Line Of Credit To LLC?
i have a piece of vacant property (residential) with a friend. the existing balance on the note is 26k it has been appraised for 85k. we purchased under an LLC. i want to know...1) can we get a line of credit under the LLC? 2) What kinf of LTV can we expect and rates...3) does the bank want to see that the LLC be established for a minimum amount of time, say2 years?
thanks for all your help
designman20
My experience is yes 2 years for LLC to be established. You have some options...
*Personally gurantee the loan as a Member
*Acquire a shelf entity with 2 years aged that has a
EIN, and possibly bank account ($1,500-$3,k) and
make it a Memer, who gurantees.
*70-75%LTV in your case $59,5 minus closing costs.
These are some suggestions I hope you find useful.
Good Refing
Joel
You did not tell us anything regarding the terms of the note. I am not sure if this is a possibility, but could you assume the note (possibly renegotiate terms) and still buy the REO? You might also start renegotiating with the bank since they now own the property subject to the $35K loan. It would seem that part of the profit the bank might make could go toward the loan ($35K) payoff. Certainly, another issue is the FMV of the property. You need to tell us more.