Unlock Equity in Your Investment Portfolio
If you own investment properties through a Limited Liability Company (LLC), you’ve already taken smart steps to protect assets and structure your real estate business. But when it comes to tapping into property equity—especially via a Home Equity Line of Credit (HELOC)—the process isn’t as straightforward.
While traditional HELOCs are typically issued on primary residences, there are ways savvy investors can use equity from LLC-owned properties or leverage their personal residence to fund real estate moves. Here’s what sophisticated investors need to know.
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Can You Get a HELOC on an LLC-Owned Property?
Short answer: Not easily through conventional lenders.
Most retail HELOCs, including those offered by digital platforms like HomeEQ, are:
- Designed for owner-occupied primary residences
- Issued to individual borrowers, not business entities
- Subject to consumer lending laws and underwriting guidelines
If your property is titled under an LLC, this presents challenges:
- Ownership structure complicates loan approval
- Commercial underwriting applies, often with stricter terms
- Limited lender availability for HELOCs on business-held assets
Alternative Strategies for Tapping Equity From LLC-Owned Real Estate
1. Use a HELOC on Your Primary Residence
This is often the most flexible and cost-effective approach. Use your home’s equity to:
- Fund down payments on new rental properties
- Cover rehab costs for BRRRR projects
- Bridge financing between closings or refinances
- Inject working capital into your real estate business
Note: HomeEQ offers fully digital HELOCs up to $500K+ for primary residences—ideal for investors who own personally and operate professionally.
2. Consider a Business Line of Credit or DSCR Loan
Some banks and non-QM lenders offer:
- Business HELOCs for LLCs (secured or unsecured)
- DSCR loans (Debt-Service Coverage Ratio), which assess property income instead of personal DTI
These alternatives may carry:
- Higher interest rates
- Lower loan-to-value (LTV) limits
- Heavier documentation requirements
3. Re-title the Property (With Caution)
Some investors consider transferring a property out of the LLC temporarily to secure financing—then transferring it back.
⚠️ Risk Alert: This strategy can trigger:
- Due-on-sale clauses from your existing lender
- Title insurance issues
- Tax and legal implications
Only consider this with guidance from a real estate attorney and CPA.
Why Many Sophisticated Investors Still Choose HELOCs
Even if your LLC property can’t directly secure a HELOC, you may:
- Own your primary home with substantial equity
- Need flexible capital for opportunistic investing
- Want to avoid rigid commercial loan structures
A personal-use HELOC gives you:
- Lower rates than most commercial loans
- Revolving access to capital
- Fast funding and minimal paperwork (especially with HomeEQ)
FAQs: HELOCs and LLC Real Estate Ownership
Yes—but consult your accountant. While legal, you’ll need to track fund use carefully for accounting and tax purposes.
Possibly. While HELOC interest is not tax-deductible for personal use, if proceeds are used to improve income-producing property, a tax professional may be able to allocate that interest as a business expense.
Currently, HomeEQ offers HELOCs secured only by primary residences held in personal names.
Real-World Strategy: Bridge Capital With a Personal HELOC
Scenario:
Jordan owns three rental properties under an LLC and sees an off-market deal he wants to jump on fast.
Instead of applying for a commercial bridge loan, he:
- Draws $100,000 from his HomeEQ HELOC
- Uses it for the down payment
- Plans to refinance into a DSCR loan later
Result: Jordan secures the deal quickly, avoids hard money rates, and keeps full control over his financing timeline.
Take Control of Your Portfolio’s Equity
If you’re a serious investor with strong equity in your primary residence, a HomeEQ HELOC is a powerful tool. Use it to move fast, stay liquid, and fund your next big opportunity—without the red tape of commercial lending.
👉 Check Your HELOC Rate in Minutes
No credit impact. No bank visits. Just fast, flexible access to your equity.
Read Next: Power Moves for Real Estate Investors
- HELOC Strategies for Real Estate Investors With Multiple Properties — Learn how to build flexibility into your portfolio
- Fast-Track Your Wealth Goals: Using a HELOC for Strategic Leverage — See how investors are using equity to scale
- HELOC vs. Home Equity Loan — Which one makes sense for your next project
- HELOC Calculator — Estimate your personal borrowing power now
💡 Ready to unlock capital from your home without selling a thing?
Explore your options with HomeEQ’s digital HELOC tool — fast, flexible, and fully online.
