Comments on: How do you acquire a business line of credit using equity in a commercial property as collateral?

Question: How do you acquire a business line of credit using equity in a commercial property as collateral?

yorja — Fri, 02 Jun 2006 22:02:57 -0800

I have recently acquired a commercial property. I want to obtain a line of credit against the down payment I put on the property. Obviously, I have not done this in the past. But, I envision the transaction being similar to a home equity line of credit. Is there anyone out there that can point me to the right direction. FYI, the commercial property was acquired via a new LLC of which I own 100%.

By: 517

517 — Fri, 02 Jun 2006 23:10:19 -0800

Your LTV is going to make all the difference on this subject. What is it?

By: unSane

unSane — Sat, 03 Jun 2006 07:09:49 -0800

Not being flip but personally I'd just go to my bank or accountant and ask them. If you don't have a bank or accountant you feel comfortable with asking, that might be a good place to start.

By: falconred

falconred — Sat, 03 Jun 2006 08:06:54 -0800

Just remember that *you* are not obtaining a line of credit, your LLC is. Don't confuse the two or mix and match money from the two.

That said, if you own 100% of the LLC then you are the corporate officer, so just go walk into the bank and ask like unSane said.