How to buy first buy and hold.

[Paul D.]

So I just put in a cash offer for a house for $40,000. House will need about 3-5k before renting it out. Pretty basic. However, how should I buy it?

I recently formed a LLC so should I buy it and deed it with the LLC or personal? My LLC will not have credit. I am wanting to do the delayed financing. I don't know what to do, I don't want to make the wrong decision. I know there is a lot of knowledge out there.

Any ideas?

Paul

[Bill Gulley]

Paul, what is delayed financing?

I suggest you see your bank. Your loan amount will be 32K at best, most likely 30K, both below most lender's minimum loan amounts.

No LLC owned individually with less than about 5 years and a net worth of less than a half million would be seen prudently as carrying it's own weight, credit on business entities is pretty much a myth for small investors. You'll always be looked at as to credit on an individual basis as the owner of an LLC.

See you bank or a mortgage broker. Take your contract with you and your check book for credit and an appraisal fee. Don't pay any up front loan origination or processing fees.

You can also find a title company and inquire about settlement, but your lender will be doing this too, so don't schedule anything.

See if you can get a loan.

Folks need to get their financing in order before they go out making contracts to buy. You may have turned yourself into a wholesaler by default if you can't get financing. Hope too that you have contingencies in your contract. :)