Llc's (by Patricia [FL]) Dec 3, 2018 8:56 AM|
Llc's (by Deanna [TX]) Dec 3, 2018 9:03 AM
Llc's (by S i d [MO]) Dec 3, 2018 9:42 AM
Llc's (by Patricia [FL]) Dec 3, 2018 9:52 AM
Llc's (by rentON [PA]) Dec 3, 2018 10:09 AM
Llc's (by Richard [MI]) Dec 3, 2018 10:28 AM
Llc's (by S i d [MO]) Dec 3, 2018 10:57 AM
Llc's (by plenty [MO]) Dec 3, 2018 1:12 PM
Llc's (by RathdrumGal [ID]) Dec 3, 2018 3:13 PM
Llc's (by MMIT [VA]) Dec 4, 2018 4:24 AM
Llc's (by Deanna [TX]) Dec 4, 2018 6:45 AM
Llc's (by Ray-N-Pa [PA]) Dec 4, 2018 7:15 PM
Llc's (by Patricia [FL]) Posted on: Dec 3, 2018 8:56 AM
State Specific Question About: FLORIDA (FL)
How can I borrow against my Llc to get repairs done on my property?I don't want to use my primary residence as collateral. All answers appreciated. Thanks --66.177.xx.xx
Llc's (by Deanna [TX]) Posted on: Dec 3, 2018 9:03 AM
Does your LLC have any assets? --96.46.xxx.xx
Llc's (by S i d [MO]) Posted on: Dec 3, 2018 9:42 AM
Most lenders will require a personal guarantee of some form for LLCs or small businesses. They know the failure rate of these are high and want to get paid regardless. If you find someone who will make non-recourse loans with the asset only as collateral, that would be high unusual. --173.20.xxx.xxx
Llc's (by Patricia [FL]) Posted on: Dec 3, 2018 9:52 AM
Yes the Llc has the property contained in it. I want to make repairs on the property, so I need to borrow against it. How do I go about doing this? Banks and Credit Unions want me to borrow against my Primary Residence.I don't understand why I can't borrow against the rental property Llc, because that is the place where the repairs will take place. plus the rental is free and clear AND producing income. What to do about it, Thanks --66.177.xx.xx
Llc's (by rentON [PA]) Posted on: Dec 3, 2018 10:09 AM
How much are the repairs you want to make on the property? Is it really worth going into debt for with a line of credit? Can you stage the repairs to do it when you actually have the cash to pay for it? I'm trying hard as hell to get out of debt! In my opinion try to avoid it at all costs. Good luck. --67.165.xx.xx
Llc's (by Richard [MI]) Posted on: Dec 3, 2018 10:28 AM
Have you tried a project loan from HD, the big box store?
These seem pretty easy to get. --23.121.xx.xxx
Llc's (by S i d [MO]) Posted on: Dec 3, 2018 10:57 AM
Again, the deal is the banks want to get paid, period, and anything that makes them think they will NOT be paid means they will ask for collateral and/or personal guarantee.
The problem here is NOT that your assets are titled in the LLC.
The problem here is SOMETHING that you're telling the bank or us is either incorrect, or it is not fully detailed enough to make everyone feel comfy with this deal. We need to find out what that is.
First, we need to ask would they loan against this property? Maybe. How much is the LTV? If your property is worth $95,000 and the property is worth $100,000, then there's no way they'll lend to you. The LTV is too high.
Even if your LTV is awesome (50% or less) the bank still wants to get paid. They really don't want to foreclose on your property and own a piece of dirt with a house on it. They want MONEY, cash, etc. The way to ensure that is they get a personal guarantee.
A personal guarantee means they can go after ANY assets: cash, accounts, real estate, stocks, etc. that are not exempted by your state's laws. There may be laws in your state limiting how they can recover cash funds from those sources, so my GUESS (and this is a GUESS) is that they're wanting to put your home on this using a HELOC/HEL or 2nd mortgage because something about this deal makes them worried that they may not get paid, and they want reassurance.
Talk to your lender and ask. Find out the WHY....
P.S. Again, banks don't lend to LLCs. They're lending to YOU. The fact that your asset is in an LLC may help you from insurance liability perspective, but banks don't care about that.
P.P.S. We're going to need more info than what you've provided to give you useful thoughts on how to proceed.
Good luck! --173.20.xxx.xxx
Llc's (by plenty [MO]) Posted on: Dec 3, 2018 1:12 PM
Use zero percent credit cards.
Why did the bank tell you they will not loan you money? --99.203.xx.xx
Llc's (by RathdrumGal [ID]) Posted on: Dec 3, 2018 3:13 PM
If the rental is free and clear and producing income, can't you just save up your cash flow for several months? Paid for properties are real cash cows. --98.146.xxx.xxx
Llc's (by MMIT [VA]) Posted on: Dec 4, 2018 4:24 AM
I agree that you should save cash from the paid for rentals and cash flow the renovations.
Paid for rentals cash flow like a personal ATM machine.
If you still want to use borrowed money, borrow from your personal house and have the LLC make the payments. Use a line of credit and pay the loan off as quickly as possible.
If you are going to borrow money, form a relationship with a bank or credit union. If the bank likes you, they will work with you on setting up a loan that will work for you.
Good luck! --70.188.xx.xx
Llc's (by Deanna [TX]) Posted on: Dec 4, 2018 6:45 AM
I had a single-member LLC that had a paid-off house. Suppose it was worth $60k, market value. They were willing to give me $40k against it. I only wanted $30k, so that's what I borrowed.
However, I had to insure it with the insurance they told me to use. (It wasn't the cheap kind!)
And I had to personally guarantee the LLC. It didn't matter to them that the LLC brought in $x/month or $y/year. They wanted me to be personally responsible for it.
And then my husband had to personally guarantee me, because I didn't have a W2 income. We were wanting to avoid that-- it was the whole purpose of the single-member LLC in the first place.
So, I'm hearing, "The bank wants me to get a loan against my personal house. I don't want to." When you tell them, "I'd like to borrow against this paid-off house over here that's owned by the LLC," what is their response?
Are the assets owned by the LLC not actually paid off yet?
Do you not have a W2 income?
Do you not have a spouse with a W2 income?
There's nothing that says you absolutely have to borrow against one property versus another property. But what's the missing information that would help us connect the dots? --96.46.xxx.xx
Llc's (by Ray-N-Pa [PA]) Posted on: Dec 4, 2018 7:15 PM
These loans are easiest when you already have a working relationship with a local lender. These loans normally stay in house and are called portfolio loans --72.23.xxx.xx