1st Purchase utilizing HELOC...what are my options?

[Steve Dora]

I have a few questions and I will definitely be seeking professional guidance as well, but wanted to throw this out in the forums.

Background: I have just opened a single member LLC. I have a personal HELOC on my primary home. I've been looking at foreclosure auctions.

1) If I wanted to use my HELOC to bid on a property and with my LLC in mind, I'm leaning to having to fund my LLC using the HELOC, with my bid price in mind (plus other costs) and then bidding on a property and if successful, write a check from my business account. This is where it gets confusing for me. If I go this route, I'll be paying interest payments personally. How do I invoice my company to recoop the interest and the payments on the principal?

2) Is there another option? Bid personally, sell to my LLC and take a conventional loan and repay myself after 6 months?

3) Do you have any experience on auction sites for foreclosed homes?  Any advice you would share?

4) Or am I totally in the wrong in and you have another avenue you think a new investor should look?

Thanks!

Steve