How Does A Guy With No Debt & Sizable Assets Get A Loan?

[Bob Riedlinger]

Hello everyone.

My wife and I have just formed a 2 member LLC. It is our intention to buy residential single family homes as investment properties to generate cash flow.

It is my intent to use my home which is completely paid off as a Home Equity Line of credit to purchase homes and then once I am done, roll that over into a fixed rate 30 year mortgage on my home.

I bounced this off of my investment advisor, lawyer and accountant and they all agreed that it was the way to go.

I called Schwab today to get the ball rolling. They are offering 3.99% financing on Home Equity Lines. I described my situation, and once I brought the LLC into the conversation, they said they could not help me because they would in effect be providing capital for a business.

I was/am flabbergasted. Am I going to run into this with other institutions as well?

I would greatly appreciate advice from someone on how to get started given my financial position.

Thanks,

Bob