First Time Investor Financing Question

[Ryan Grant]

Hello,

My business partner and I are looking to invest in our first rental property and I was looking for some advice on how to structure the financing while using an equity line from our other business to help get us started.  We are both co-owners of another business and the other co-owners have given us the ok to tap into the business equity line our first purchase.  The rental property will be completely separate and only belong to myself and one other partner (other co-owners will not be involved).  The bank that has given us the equity line through the other company is also ok with us using the equity line for a separate personal project.  Basically, we were wondering what the best way to use this would be so that we can come out of our personal pockets as little as possible and be able to pay back the loan in full within 6 months to a year.  Our idea was to get the other company to loan us personally for the full purchase price so that we can pay cash for the rental property and also front the renovations.  After 6 months, we would refinance the property and hopefully cash out enough to pay back the loan to the company in full.  Would that be the best way to go about it or would it be more beneficial to have the company buy the property and then sell it to us personally and we finance it after 6 months?  A mortgage broker told me that the best way to do it would be to purchase it personally but have the deed of trust with the company.  That way, it technically wouldn't be a cash out since the bank would pay the company back directly therefore the interest rates would be better than a cash out refinance.  I don't know much about deeds of trust and I'm not sure if that is even true about the interest rates being lower if we do a deed of trust.  Any suggestions on how we can best get started with the equity line at our disposal would be greatly appreciated!