5 Rentals, One LLC, One Line Of Credit?
Hello! Long time member first time poster.
I have 5 rental properties. Is it posible to have one loan for all 5 of the properties under a LLC? What im looking for is a streamlined way to acces the bits of equity in all my rentals, have just one large equity line of credit at my finger tips.
Does this make sence? Any and all help is greatlly appreciated.
thanks!!
mm
have you found a bank willing to give an equity line to an llc?
I think the loan called cross-collateral. I was told that this kind of loan is high risk. If something happens with 1 property, you loss all 5. Also you might not be able sell one property without refinancing it.
My bank was willing to give us one HELOC on all the properties we had in one LLC but we had to transfer them to our names out of the LLC.
The bank was not willing to lend to the LLC not even as a commercial loan. They said it was too easy to sell the LLC and leave them in an awkward position.
None of the banks I have dealt with would lend to an LLC. And our 1 commercial loan is to the LLC and us not to solely the LLC
Thanks for all you input!!
marc
how does using a land trust and a promissory note help you to convience the seller for 250K < FMV?
It seems that for some reason he needs or wants to sell.
Put it in a Landtrust where the both of you are the beneficiaries and his portion has a declared value of $70K.
Of course if someone has a property they know is worth $250K and they are willing to take $70K that sends red flags waving high.