I may have gotten myself into a tight gut spot early on in my real estate career.
I purchased a property with cash under my name, rehabbed and have it renting at a great rate and have about overall 4% after all costs which is great! I leveraged this property with a HELOC and bought another, however under an LLC. (As per my accountants advice).
The issue I’m running into now is continuing this process. I’m unable to HELOC the 2nd property because I have it seeded under my LLC.
So my options as I see them are to begin the process of seeking a commercial loan or transfer the 2nd property back to my name.
I’m sure there are much better options that I simply am not aware of... any advice would be greatly appreciated!
So you have all he details, after purchase and rehab cost I’m into the 1st property for 35k and it is rented for $825/month. The second property total investment is only 22k and that also is rented for $825/month. Both properties appraised right around 55k.
Congrats on a couple of great purchases! In Texas, I've had success finding banks that will do lines of credit on properties owned by LLCs and LPs. I would suggest you try smaller local/regional banks and don't be surprised if they ask you to personally guarantee the loans. Good luck!
@Mike Springer thanks Mike! I’m heading to an investors meeting tonight with some other BP followers so I’m hoping to learn about some local banks that will be willing to work with me. Good luck to you!
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