House Flipping using LLC

[Alexander Chavez]

Hi All,

Planning on doing some house flips in the city of Chicago (specific neighborhoods on the NW side). I recently created an LLC for this. I am now wondering if the LLC will even help for the house flips. Depending on the property type and condition I am looking more into using a bank(conventional investment-20-25% dwn---yes I understand property has to be livable upon purchase) or rehab loan lender(20% dwn of purchase + rehab cost) for the project since I will have enough funds through a HELOC for the down payment, but not enough to purchase and fund the entire flip completely. The problem is I can only obtain the loan under my personal name, since the LLC does not have 2yrs worth of income. Is there a way to have the loan under my name while having the title under the LLC and would any bank allow you to do this? Would this even make sense to do, anyone have experience in doing this? Would like to hear your thoughts and any recommendations you may have. I guess the whole idea of starting the LLC was so I can protect my personal assets in case anything goes drastically wrong with one of the flip projects, as well as to expense the costs associated with the flips (which I may be able to do without the LLC regardless?)

Trying to figure out my options. I understand hard money could be an option to purchase it all cash through the LLC, but since I have a decent amount of available funds through my HELOC it would be nice to avoid the high interest rates and points that comes with hard money. Not ruling hard money out completely, but just trying to explore my options.