Financing real estate through an LLC?

Deal Score0

question for my colleagues there rehabbers … In recent years, the volume of transactions I’ve been rehabbing in / Arena mirrors which increased significantly in recent years. Since my “training wheels” came out, I noticed that I no longer offers both before and were taking advantage of opportunities to make extra income. I noticed the disturbing trend, however, that was my credit score slowly but steadily declined over the past year. My guys are mortgages to tell me that this is due to the fact that I accumulate properties (I buy it now for the long-term lease and maintain) a rate increase. Some of my colleagues are promoting the benefits of the acquisition of properties in your LLC, the question of what companies really want to avoid these loans? and curious about how other investors to finance multiple properties?

  1. Reply
    Mr. Knowitall
    May 2, 2011 at 8:28 am

    You may be able to find companies who will lend to an LLC, but there aren’t many out there. The interest rates with these companies will be high.
    The GSEs – Government Sponsored Enterprises , which are FannieMae/FreddieMac/GinnieMae, will not purchase loans that are in the name of an LLC; therefore, most lenders won’t do them.

  2. Reply
    May 2, 2011 at 8:39 am

    Very few banks will lend to LLC’s. Thornburg Mortgage is one of the few that have a specific program for it. They almost got shut down last week though, but it seems they’re back on track with new funding.

    Ideally though, you should find a local bank to partner up with. Someone who can look at your past track record, and see that you know what you’re doing and making money at it.

    Leave a reply

    Register New Account
    Reset Password