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Updated over 1 year ago, 06/18/2023

User Stats

19
Posts
17
Votes
Carissa Holmes
Pro Member
  • Rental Property Investor
  • Driftwood, TX
17
Votes |
19
Posts

Buying 2-4 unit mult-fam under LLC -what are the steps for funding - must it be comm?

Carissa Holmes
Pro Member
  • Rental Property Investor
  • Driftwood, TX
Posted

This will be our first purchase not in our personal names. It will be purchased by our LLC. I'm trying to understand the process for purchasing 2-4 doors under a llc and how it differs from buying 2-4 doors under our personal name. For context:

It will be 2 - 4 doors in Texas / LLC est. 2021 / LLC has a DUNS # but no credit / LLC has checking & savings accounts with WellsFargo that are solely used for our very small (2door) rental business / we have an existing relationship with a mid-size credit union / our personal credit scores are both 800+ / very solid W2 income

I understand the process of getting pre-qualified, showing POFs when purchasing in our names but can someone please lay out the steps to being able to prove you have access to the funds when submitting your offer as a llc (please talk to me like I'm 5 :-)) 

Specifically for DSCR loans - I assume you must identify the property -> get the loan -> make the offer, is that correct?

Also, when buying under a llc is that automatically a commercial loan?  Even if the door count is less than 5?

Other than the "pre-qualification process" please feel free to share any other meaningful differences between these two types of transactions.

Thanks SO much in advance!

  • Carissa Holmes
  • Loading replies...