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Updated almost 9 years ago,
Loan Structure vs Financing
Hello everyone!
Buying a new rental in New Jersey. Struggling with how to properly structure this purchase. My personal credit is in the 800 range and traditional lending can get me financed at 4 to 5%, this is my 5th property. I was going to fund the 20% + closing with my SDIRA and finance out the rest with a traditional loan. Not sure how that would work, would tenant make two payments every month 1) to IRA based on % contributed to purchase and 1) to us and/or LLC? LLC is newly established and has no credit per se. I'm guessing that means it's not eligible for traditional financing correct? How can I purchase this property and acquire the financing I need without putting it on our personal credit or paying a higher interest rate? I'm guessing there are plenty of experts out there that can help me work through this.
Any help you can offer would be greatly appreciated.
Thanks
Peggy Sue