Transferring property to my LLC to avoid DTI ratio

[Roy Aharonovich]

Hello,

I have a question. I am looking to buy a few investment properties, hold and rent. It looks like my DTI would reach over %50 after the first property since for my personal one I have to pay property tax, HOA fees and insurance. Those payments drive my DTI ratio up. I have an LLC opened with the funds ready to be invested. Is there a way for me to transfer my personal property to the LLC so when I go to take a loan those payments won't show up on the DTI ratio? (There is not mortgage on my property). If so would I have to pay transfer tax/fess?

[David Hanor]

Yes--I work with commercial lenders on all of my deals which are all 4 plex and under. Check out the local banks in your area. I have two that only operate in a three county radius and a few national banks that are being very aggressive with real estate lending. Your huge banks like Wells Fargo and Chase aren't going to help you out so think smaller is better.