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Updated 10 months ago,
Building line of credit for LLC?
I'm working on my plan to start flipping houses and I figure if I can work my way up to a $300k line of credit for my LLC I can fund 2 rehabs at once and cover carrying costs without having to use my own cash. I have over $200k equity in my primary and I will be taking out a HELOC to fund my first deal but looking ahead - I'm not sure how long we're going to hold on to this house so I'd like to focus on building a business line of credit that I can always depend on.
How hard is it to get approved for a $300k line of credit especially considering my LLC is brand new? My wife and I currently have about $120k in W2 income and I plan on keeping my W2 job until I can no longer justify it. Our combined DTI is around 30% right now. My wife will be keeping her job indefintely and I will be the one "running the business." Can I use my wifes income to help qualify for loans if we both personally guarentee it even though I will be the sole owner of the LLC? Or would she have to own over 25% of the LLC?
Any input would be greatly appreciated!