Anybody using a LLC with a business line of credit to BRRRR?

[Billy Farley]

I am looking to do my first BRRRR that I do not live in as a primary residence. I have successfully rehabbed two homes and provided over 120k in equity from them. My idea is to form an LLC with my partner to qualify for a 100k business LOC with our credit scores (both 700+), our DTI ration, as well as my equity. Does anyone have experience doing this? I am also a real estate agent now who will be able to buy and list my own properties..

I would like to BRRRR if it makes sense on the refi to pay off the LOC, or sell for a quick turn around.

Thoughts/suggestions?

TYIA!

[Greg Kasmer]

Billy and Cliff - I have a few business lines of credit in an LLC, but they were built over time. A few things I've learned are: 1) Banks/Credit Unions like to see 2+ years in business at a minimum, 2) In addition to your FICO score, they also like to see business revenues via tax returns, 3) They sometimes build their credit decision off of a % of your business revenues (i.e. They will offer 20% of your revenues in a HELOC), 4) Some banks are more "business friendly" than others, so call as many as you can to find the right ones. Right now, I have a LOC with Wells Fargo, PNC, and Key Bank, but hoping to add more. Good Luck!