Non-RE Business credit line to buy investment property?

[Russell Holmes]

I'm curious if anyone has had any success using business credit based on an existing established non-RE business to purchase residential investment property?

I'm in the process of talking with several lenders found by submitting a Lending Tree inquiry for business credit, but between my schedule and theirs it may take me a few days to get through talking with each, and they are still only a small sampling of what may be out there. Some lenders seem to be geared toward extremely short term loans (<12 months) with stupid high interest rates (25%+) while others have mentioned in general info that they offer SBA loans, lines of credit, etc with 10-25 year terms and interest at a more reasonable 5-10% rate.

I have a service business that I founded in 2007 (mobile auto detailing). It has been profitable and growing since day one and has very little need for working capital loans, equipment loans, etc.  One thing holding me up may be the extremely high profit margin on a modest gross. I know that sounds weird, but in past times of searching for business based financing, they look at gross revenue rather than profit. I'd have better chances with some lenders of getting financing if I grossed $500k with $475k in expenses ($25k profit) than my situation of making about 85-90% profit on $105k gross. 

I'm not talking about pretending that I plan to use it for equipment and instead buying a duplex, I'm being up front with them about what I'm looking to do. The business is established as an LLC, and with the state I filed the LLC to be able to do business in any legal realm, rather than specifying an industry. So what I'm saying to these lenders is that although our primary business is in automotive detailing, we are considering branching out into holding and managing some rental property. They aren't as completely unrelated as it may seem. We are in people's driveways on a daily basis, and have close business relationships with tons of people in the area from middle class to extremely mind-blowingly wealthy. Oftentimes customers will mention to us in conversation plans to buy or sell their primary residence or investment properties, and in years past it has just been conversation. Regardless of where the financing for property may come from, the contacts I've made in the last decade will definitely be of value.

 I've done some research into different business loan programs, but am not able to decipher exactly what parameters each includes. Although there are many that are seemingly geared toward real estate investing, including some SBA loans/lines, I'm not sure if that means that the 'business' getting the loan would already have to be in the Real Estate industry. Basically, I'm hoping to use my existing and successful business as a sort of 'collateral' for financing.  It would be phenomenal if I were able to get a $100-150k business loan or line of credit at less than 10% for 15-20 years to use for purchasing my first investment.  On one hand, I know that is an unrealistic ideal scenario, but on the other hand, keeping a business running for 10 years and having year-over-year growth every single year may be good for something....

So, has anyone here with a business in a different industry been able to use that business to get financing for a residential real estate investment? I wouldn't plan to keep all investments within the same LLC as my service business long term, but if that was the way I needed to start out, I don't think it would be a huge issue. I'm most interested in buy-and-hold of either SF or 2-4 unit MF with at least a bit of positive cash flow to put away for future expenses. I don't need the cash flow for now, but I don't want it to be a negative cash flow either. I likely would refinance a property in a more traditional manner down the road, but I'm not going to buy something on astronomical interest terms with the assumption I can refi later.

This isn't the only option I have, as I also have equity in my house I may be able to use as well as other creative financing methods, but just sort of exploring options.  Thanks for any insight!