I am exploring funding options for a new LLC, and am wondering whether
refinancing a mortgage on a family home and/or rental property, with
withdrawal of additional home equity funds, is the best way to quickly obtain
funds for investment, at the lowest interest rates. Is this commonly done?
What are the pros and cons (obviously, the mortgage must be repaid to avoid
risking losing the property.) I would be grateful for any advice or
suggestions. Thank you.
BizResearcher | Window Shopper |
12/11/2012 - 11:55 am
You may want to talk with your banker to find out the pros and cons of your
idea. He/she can provide the necessary details to help you make the right
decision. Just be careful about keeping your personal and LLC funds separate,
which the purpose in creating an LLC (liability protection).
This is done all the time specially when it comes to startups, which are much
more difficult to finance that an ongoing business with operational
experience. The benefits of course are faster approvals, and cheaper
financing.
You already recognized the biggest downside, which is that you are putting
the property at risk. This is even more of a downside when you are in a state
that provides protection to your primary residence. By allowing a lien on the
property, you put an asset that would be protected into play in case of
financial difficulties.
JGabriel | Community Moderator |
12/6/2012 - 11:54 am
Hi, I suggest talking to a mentor who could offer you specific guidance. You should also check out the page on borrowing money for your business to see different forms of financing. Good luck!
BizResearcher | Window Shopper | 12/11/2012 - 11:55 am
idea. He/she can provide the necessary details to help you make the right
decision. Just be careful about keeping your personal and LLC funds separate,
which the purpose in creating an LLC (liability protection).
loanuniverse | Window Shopper | 12/7/2012 - 2:03 pm
more difficult to finance that an ongoing business with operational
experience. The benefits of course are faster approvals, and cheaper
financing.
You already recognized the biggest downside, which is that you are putting
the property at risk. This is even more of a downside when you are in a state
that provides protection to your primary residence. By allowing a lien on the
property, you put an asset that would be protected into play in case of
financial difficulties.
JGabriel | Community Moderator | 12/6/2012 - 11:54 am
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