Home Equity Line of Credit

[Matthew Rembish]

So I recently met with a contractor who does many rehab flips a year and being a new investor, I asked him what was the best way to fund these kinds of deals with the limited money I currently have. He told me to go to the bank and apply for a home equity line of credit. Does anyone have any tips or words of wisdom when doing this? Also, should I start my LLC first and then open the line of credit at a community bank under the LLC instead of going with a larger nation-wide bank under my personal name?

Any feedback is very appreciated! Thanks!!!

[Chris Simmons]

Actually I was being facetious. The last thing you need to worry about is an LLC. There are plenty of posts here about the issue. Look at some of mine as I have researched the matter thoroughly. You are wasting your time and money worrying about building this theoretical shell of protection.

Start making money. Do a few deals. Then worry about how and if an LLC or other structure might be worth your time and expense. You will likely find it is not worth it. Once you have significant assets and are past the point of being able to utilize conforming loan products, sure, look into an LLC.

You are basically deciding to start playing golf by trying out for the US Open.  Don't waste your time.  You aren't ready yet.