$380K in Equity to Fund Business Expansion

Sandra bought her home in Highland Park in 2018 for $680,000. By 2024 it was worth $1.35M. She had a $420,000 mortgage left — roughly $930,000 in equity.

Her marketing agency was growing fast. She needed $350,000 to hire staff, move to a larger office, and fund a client project that required upfront costs.

Her bank offered a business line of credit at 11.5% with a personal guarantee and monthly reporting requirements. She did not love that.

Her home equity could get her the same money at a fraction of the rate.

The catch: she was self-employed. Tax returns showed $87,000 — nowhere near enough to qualify conventionally.

We used a bank statement cash-out refinance. Twelve months of business deposits averaged $38,000 a month. That is $456,000 in qualifying income.

She pulled $380,000 in cash at closing. Paid off the office buildout, hired three people, and still had $140,000 left in reserves.

Your home equity is an asset. For self-employed borrowers in LA, it can also be the cheapest capital you will ever access.