Using an LOC From a Business to Finance a BRRRR

[Ike Stephens]

I'm trying to find the most creative solutions possible so I can fund more deals. Here's a possibility I've been pondering.


My wife and I own another company completely unrelated to our real estate business. Through that company I have an unused line of credit of $100,000. I was trying to see if I could use that (along with cash of my own) to purchase a property and rehab it for a long term hold and pull the equity out of it using a delayed finance exception. Probably properties in the 30-60k range (before repairs).

I'm just curious how a lender would view the source of these funds. To be clear, we would be purchasing the property ourselves (not through the LLC) and it would fall under FMFM guidelines etc.


This idea is only half baked right now but I'm trying to find as many solutions as I can. If this is a viable option it would give me more flexibility.


Any comments/concerns/feedback is greatly appreciated! Hopefully I was able to clearly convey the situation.