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    7 Replies Latest reply on Jan 15, 2009 5:45 PM by LUCKIEST

    Business LOC for an LLC

    sunshine108 Newbie
      We have a family partership LLC (in California) that holds the family home and a piece of land that we are developing for sale. The property has two lots and we have a contract with one buyer to purchase once the permits are in place. We have a cash flow problem and are looking for a business line of credit to complete the project. We originally wanted to get an LOC on the residence but because it is held in an LLC this wasn't possible. Any suggestions?

      Thanks,
      Sunni
        • Re: Business LOC for an LLC
          bmt2008 Adventurer
          Have you contacted your local bank? With a buyer in place (assuming its is a well quailified buyer), should not be much of a hassle with the bank.

          There are also many non-bank financing companies (many I know personally) that would love this deal provided it is a good buyer on the other side (companies that do only commercial RE deals).

          How much are you looking for? Have you thought about the most traditional source of bootstrapping? - Credit Cards. What about other family members, can you pool funds?

          Lastly, what about the buyer? Could they put up some funds now?

          Just some thoughts
          1 of 1 people found this helpful
            • Re: Business LOC for an LLC
              sunshine108 Newbie
              We initially contacted our local banks about a personal LOC on the residence, problem was the title being in an LLC. So we began thinking about a business LOC. We are looking for interim funds to complete the first phase of permits. Once this is done the (well qualified) buyer will come in with his next cash contribution. He has put up cash already. I don't like the thought of credit cards. The LOC would work best for now as we move through this rather long process with the city and permits. We just need a pool of funds to draw on as we go. Once we get through this phase we will go for a more conventional construction loan for grading & retaning walls. So if there is a company that could make this available we're looking.
              • Re: Business LOC for an LLC
                sunshine108 Newbie
                We initially contacted a few local banks. The problem was getting a personal LOC on a residence that is in an LLC. This is our preference but we haven't found a lending institution so far to do it. So we began thinking of a business LOC. I don't like the sound of credit cards for this. What we need is just interim funds to draw on as we continue through the maze of getting our permits from the city. It's taking us longer than anticipated and is draining our cash pool. Once we have the permits the (well qualified) buyer will come in with another relatively small amount of cash, he had initially put up a deposit. Then we will be looking for a more conventional construction loan to finish the grading & retaining wall phase at which point we will be ready to finalize the deal with the first buyer and sell the other lot.
              • Re: Business LOC for an LLC
                Tori Adventurer
                Hi sunshine108 and welcome to the SBOC!

                I know the Community can give you plenty of suggestions on how to handle your particular situation

                Good luck
                ~Tori
                • Re: Business LOC for an LLC
                  LUCKIEST Guide
                  Business LOC for an LLC, Welcome

                  YES I can help, I have suggestions, HOWEVER I made a New Year's resolution NOT to give out suggestions to postings who do NOT tell me who they are
                  Go to Members page and share some info with us and then I will be happy to share with you.