How can I tap into equity from my commercial property
Hey everyone, I was wondering how could I tap into equity from a commercial property I own that is paid off? It is a mixed use property with first floor being commercial and top floor residential. I was thinking of forming an LLC and moving the asset there so that I can refinance. Is there any better way?
[{"id": "i85665d", "text": "Mortgage Broker here.\n\nYou don't necessarily need to put it into an LLC to refinance. It is usually recommended for tax purposes and makes the accounting easier to expense interest payments, maintenance...etc against and keep it \"clean\" all in one place, however if its in your personal name now you can take out a mortgage against it as is. \n\nFeel free to PM if you have any specific questions. Happy to help. \n\nNFA.", "replies": [{"id": "i8awej3", "text": "What is recommended for tax purposes. You kind of went through that quickly. Thx", "replies": [{"id": "i8btce7", "text": "I\u2019d consult a CPA for your specific needs. Everyone\u2019s tax structure is different.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i858oxi", "text": "talk to a commercial banker and a CPA", "replies": [], "depth": 1}, {"id": "i86qkzk", "text": "Obtain a line of credit from a local bank.", "replies": [], "depth": 1}, {"id": "i87513w", "text": "Cash out refinance. Talk to a commercial mortgage broker. Also- always put any property into an LLC to minimize your risk.", "replies": [{"id": "i89suvf", "text": "Wouldn\u2019t it make sense to put it in an LLC from a liability perspective? Feel like a personal guaranty on a commercial asset would not be ideal at all", "replies": [{"id": "i8c7t6b", "text": "A lender will require a personal guarantee from the LLC Member(s) regardless.  However, placing any investment into an LLC is always best.  Never hold them in a personal name.", "replies": [{"id": "i8ywac3", "text": "I'm not clear on your comment - I've set up LLCs with their own EIN, DUNS number and credit file. The credit of those LLCs had nothing to do with the members.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i8bifxj", "text": "I\u2019m a commercial mortgage broker. It doesn\u2019t have to be in an LLC. You can get a cash out refi if the property is non owner occupied.", "replies": [{"id": "i8bqzm9", "text": "Is there a way to do it if it is owner occupied?", "replies": [{"id": "i8enb3q", "text": "Yes there are a few programs available that I know of for mixed use, however there are several guidelines in place that could qualify or disqualify you. Would you like me to look into this for you?", "replies": [{"id": "i8g1hkl", "text": "Yes, if you can. Thank you!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]