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Mortgages for investment properties
Posted on 6/21/12 at 11:02 pm
Posted on 6/21/12 at 11:02 pm
(no message)
This post was edited on 4/6/13 at 1:57 pm
6
Posted on 6/21/12 at 11:21 pm to bigblake
Your mortgage broker is retarded. They loan to new llcs 1000 times a day.
Posted on 6/22/12 at 6:23 am to bigblake
Why are you forming an llc to rent a house 
Posted on 6/22/12 at 6:39 am to bigblake
Your broker's statement is incorrect.
Posted on 6/22/12 at 7:13 am to OTIS2
What he meant to say was that he can't take all of the LLC owner's personal equity in a forclosure.
This guy is an idiot.
This guy is an idiot.
Posted on 6/22/12 at 7:21 am to TheHiddenFlask
quote:
What he meant to say was that he can't take all of the LLC owner's personal equity in a forclosure.
Isn't it customary to have small business owners personally guarantee loans?
This post was edited on 6/22/12 at 7:22 am
Posted on 6/22/12 at 7:23 am to TheHiddenFlask
I think the broker was trying to find a polite way to decline the business. Personal guarantee forms are easy to come by... 
This post was edited on 6/22/12 at 7:24 am
Posted on 6/22/12 at 8:32 am to OTIS2
(no message)
This post was edited on 4/6/13 at 1:57 pm
Posted on 6/22/12 at 11:10 am to bigblake
quote:You'll be requested to produce the same personal documentation as though you were buying the property personally. The lender is going to need to qualify you as a guarantor...the strength of the loan is on you(and the other investors), not the LLC. Be sure and get some good tax advice as you structure this.
When I buy it with the LLC what will I need to provide? All we have is a recently formed business bank account.
Posted on 6/22/12 at 12:18 pm to bigblake
actually all of you are wrong and the broker is correct. you cannot get a conventional mortgage as an llc. you as the owner of the llc will have to qualify for the home. once you purchase the home you can move it to an llc for tax purposes but an llc cannot purchase the home.
Posted on 6/22/12 at 12:20 pm to hawkeye007
Where did the OP say he was purchasing a home? I missed it.
ETA: I see the post down further.
ETA: I see the post down further.
This post was edited on 6/22/12 at 12:22 pm
Posted on 6/22/12 at 12:24 pm to bigblake
blake what you are going to find out is that mortgages are tricky on investment properties. first you as an individual cannont have more than 5 mortgages on credit. i know plenty of investors that are stuck with high rates on investment properties because they have over 5 mortgages. rules change people get stuck. with multiple investors in an llc the only way for the llc to purchase the homes is with a commerical loan. i wish you the best of luck with that becuase those are hard to come by. you need to sit down with a mortgage banker and let him or her explain the way it works on investment properties
Posted on 6/22/12 at 12:30 pm to hawkeye007
quote:Yes. But wouldn't that be expected?
with multiple investors in an llc the only way for the llc to purchase the homes is with a commerical loan.
Posted on 6/22/12 at 1:30 pm to I Love Bama
quote:
Your mortgage broker is retarded. They loan to new llcs 1000 times a day.
Posted on 6/22/12 at 1:59 pm to bigblake
My wife and I have had at one time over 80 rental units...so I've been down this path. First off, GTFO of wells Fargo now!
Find you a local banker that will have a personal relationship with you and trust you with your business. First off you cannot have over 2 30 yr conventional mort on your personal credit. Therefore any loan you seek after that will have to be on a commercial side of the banking bracket putting you into the LLC thing. This also requires you to purchase commercial insurance which is higher than personal coverage on a personal property.
Find a new banker now!! A VP of lending that has an approval limit of about 1mm w/o going to a committee.... Once I got the trust of my banker I was buying as much as 1 and 2 mm$$ properties with as little as 5% down. Go interview them....trust me they are looking for you as much as you are for them. This is the key part of your business..
My banker and I are now personal friends and I send him updated financials every month not that I have too but that's how important he is to my business.
OMT, lose the partner, you don't need him. Have a great day.
Find you a local banker that will have a personal relationship with you and trust you with your business. First off you cannot have over 2 30 yr conventional mort on your personal credit. Therefore any loan you seek after that will have to be on a commercial side of the banking bracket putting you into the LLC thing. This also requires you to purchase commercial insurance which is higher than personal coverage on a personal property.
Find a new banker now!! A VP of lending that has an approval limit of about 1mm w/o going to a committee.... Once I got the trust of my banker I was buying as much as 1 and 2 mm$$ properties with as little as 5% down. Go interview them....trust me they are looking for you as much as you are for them. This is the key part of your business..
My banker and I are now personal friends and I send him updated financials every month not that I have too but that's how important he is to my business.
OMT, lose the partner, you don't need him. Have a great day.
This post was edited on 6/22/12 at 2:02 pm
Posted on 6/22/12 at 2:08 pm to bigblake
quote:
When I personally buy a home I have to provide a large swath of financial documents. When I buy it with the LLC what will I need to provide? All we have is a recently formed business bank account.
You'll need your persoanl assets also but he will want your Articles of Incorporation for the LLC and all 'members financials for that LLC.
Also, never buy an investment house from an investor who previously rented it... good rental properties don't go up for sale :)
Did I mention to lose the other investor ? :)
Posted on 6/22/12 at 3:49 pm to bigblake
If you want to put it in an LLC name it will probably have to be considered a commercial loan.
This broker will probably simply lose the business to a commercial banker and he is being greedy so he made up some BS excuse to keep the business to himself.
Start-up LLC's finance investment property everyday. As mentioned earlier, your guy is an idiot.
This broker will probably simply lose the business to a commercial banker and he is being greedy so he made up some BS excuse to keep the business to himself.
Start-up LLC's finance investment property everyday. As mentioned earlier, your guy is an idiot.
Posted on 6/22/12 at 5:13 pm to lsuroadie
(no message)
This post was edited on 4/6/13 at 1:57 pm
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