HELOC and LLC

[Sean Daugherty]

This is my first post outside of the newbie introductions, so I apologize if this isn't in the correct forum. I've been listening to podcasts and reading forums and articles for what seems like forever, yet there are still several aspects of investing I have questions about. I've tried to personally reach out to some real estate professionals I know, but I feel like I've been brushed off. If I can't talk to people I actually know and can meet with, I hope Bigger Pockets will be able to help.

My biggest obstacle to getting started has been understanding my financing options. My two-prong question is about HELOCs. 

1. We have lived in our home for about 2.5 years now. We have a private mortgage with a family member, but we have no official documentation showing we have a mortgage. If I were to apply for a HELOC, how would the private mortgage affect my equity in the house? Do I have to live in my home for a minimum amount of time before banks would consider giving me a HELOC?

2. I plan to set up an LLC for investing. I assume I would not be able to receive a HELOC on my primary residence through an LLC, but is there a way I can transfer it to an LLC once I'm approved? Is there any way to minimize personal risk while still using a HELOC?

Are my questions showing my ignorance? Do I not understand HELOCs as much as I think?