All Forum Posts by: Cian R.

I recently purchased a renovation property using an LLC that was formed specifically for holding the property. It was purchased with all cash so there are no liens on the property. Because the property is held under an LLC, I can't qualify for a HELOC. Any suggestions out there for alternative forms of financing? The property needs all new plumbing and electrical.

So after speaking with 30 individual lenders, I’ve reached the following conclusion:

No Lender will give you a HELOC if the property is held under an LLC. You will have to go with a Business Line of Credit or a Renovation Loan.

However three tidbits of useful information that someone may find helpful on their journey:

• KeyBank National Associates will match HELOC rates for a Business Line of Credit if the LLC is securing a personal home
• Mid-Hudson Valley Federal Credit Union offers 1.99% introductory rate for HELOCs for the first six months – the best I’ve seen in my research of 30 lenders
• I’ve been told that US Bank will provide HELOCs for investment properties

So after speaking with 30 individual lenders, I’ve reached the following conclusion:

No Lender will give you a HELOC if the property is held under an LLC. You will have to go with a Business Line of Credit or a Renovation Loan.

However two tidbits of useful information that someone may find helpful on their journey:

• KeyBank National Associates will match HELOC rates for a Business Line of Credit if the LLC is securing a personal home
• Mid-Hudson Valley Federal Credit Union offers 1.99% introductory rate for HELOCs for the first six months – the best I’ve seen in my research of 30 lenders

So after speaking with 30 individual lenders, I’ve reached the following conclusion:

No Lender will give you a HELOC if the property is held under an LLC. You will have to go with a Business Line of Credit or a Renovation Loan.

However two tidbits of useful information that someone may find helpful on their journey:

• KeyBank National Associates will match HELOC rates for a Business Line of Credit if the LLC is securing a personal home
• Mid-Hudson Valley Federal Credit Union offers 1.99% introductory rate for HELOCs for the first six months – the best I’ve seen in my research of 30 lenders

Hi @Kerry Baird do you have the name of anyone specifically that I can speak to at US Bank? I seem to be hitting a wall with them on this! Thanks 

@Steven Griffith @Brian G. is there any downside to applying for the HELOC now? So that it's all set up and ready to go for when you find your next deal?

Do you mind sharing the name of the three banks that you have potentially lined up? I'm still struggling to find a bank that will provide a HELOC on an investment property.

Thanks!

Thanks @Andrew Postell

@Kerry Baird unfortunately US Bank requires you to be living in the property.

@Andrew Postell using simple numbers, but keeping the metrics constant, the deal looks something like this:

• Purchase: $100,000
• BRV: $150,000
• Renovation: $100,000
• ARV: $250,000

Hi all,

The below scenario seems unlikely, but is anyone aware of a lender that would provide a HELOC under the following circumstances:

• Property held in an LLC
• Not currently livable – needs new plumbing and electrical
• HELOC based on the value of the property, not the purchase price (purchased less than 12 months ago at a discount)

If not, any other suggestions? The property was purchased with 100% equity. I was looking for a HELOC before taking out a 30-year mortgage in a few months based on the POST-renovation value.

Thanks