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Updated over 4 years ago on . Most recent reply
Advice on BRRRR methods
After spending time reading on BP. Whats the best way to BRRRR. I am ready to buy my first house and I really like this idea. I am wanting to start an LLC as an investor. As I understand, it seems that an LLC would make it hard for me to get lending and would only be a hard money loan. With that, woudl I be able to refi under an LLC?
Most Popular Reply
Why do you want an LLC? the main reason for an LLC is liability protection. If you are a high net worth individual with plenty of assets to protect, then it might make sense to start there. However if that is the case then BRRRing a SFR may not be the best method of real estate investing for you.
You almost certainly will not be able to secure the best long term financing with a property held in an LLC. To do this the property needs to be in your name. You can complete the deal, refi and get a good long term loan, and later down the road when you have more assets to protect you can transfer the title to an LLC. Until then use liability insurance and an umbrella policy to protect you.
Every bank I have ever talked to (I've talked with approximately 30-40) will only issue commercial loans to an LLC.