Line of Credit Options for Commercial

[Pete Harper]

I wanted to see what line of credit loan products that are available for commercial. I own several properties 100% that are held within an LLC that I would like to be able to tap the equity without taking out a conventional loan. I know that HELOC loans are not available to commercial investors but looking for something similar. I had planned on doing a BRRRR but with interest rates so high I can't see taking out a 30 year fixed interest loan. It would be nice to have a line of credit that I could quickly tap should a good deal come along.

Property #1 is a duplex that I own outright. It was purchased and renovated as the second property in a BRRRR chain. Funding for purchase and renovations came from cash-out refi on another 4-plex (not property #3) Gross rents $2400.

Property #2 is a 12 unit apartment complex that we paid cash for.  We've owned it two years now and have it stabilized, fully rented and with higher rents.  Gross Rents $8400

Property #3 is a 4-plex that we paid cash for and renovated.  We've owned it three years now having it stabilized and fully rented. Gross Rents $3200

[Pete Harper]

Quote from @Jay Hurst:

Quote from @Pete Harper:

I wanted to see what line of credit loan products that are available for commercial. I own several properties 100% that are held within an LLC that I would like to be able to tap the equity without taking out a conventional loan. I know that HELOC loans are not available to commercial investors but looking for something similar. I had planned on doing a BRRRR but with interest rates so high I can't see taking out a 30 year fixed interest loan. It would be nice to have a line of credit that I could quickly tap should a good deal come along.

Property #1 is a duplex that I own outright. It was purchased and renovated as the second property in a BRRRR chain. Funding for purchase and renovations came from cash-out refi on another 4-plex (not property #3) Gross rents $2400.

Property #2 is a 12 unit apartment complex that we paid cash for.  We've owned it two years now and have it stabilized, fully rented and with higher rents.  Gross Rents $8400

Property #3 is a 4-plex that we paid cash for and renovated.  We've owned it three years now having it stabilized and fully rented. Gross Rents $3200

 @Pete Harper    What are you looking to do with the equity?  Are you looking to buy properties distressed with cash (from the line of credit) and then put permanent long term financing on the properties paying back the line of credit? 

On a recent episode of BP they talked about the change in loan seasoning time from six to twelve months.  David Greene said he was using a LOC to get around the seasoning period.  Buy using the LOC then refinance into a conventional loan.  Since the property is not held as collateral for LOC the seasoning period doesn't apply.  

Personally I have two things in mind. First I purchased an off-market duplex that needs work.  Normally I self fund renovations from income on other properties but if I had a LOC I could complete work faster. I'm always looking for off-market deals.  If I had LOC I could be in a position to pay cash for faster closing.  Maybe use David G's LOC strategy.