Down payments options/lender advice/partnership structure

[Victor Lebegue]

I'm just getting started in real estate investing. I purchased my first property in March of this year where I reside. I currently rent out the basement and one of the upstairs rooms putting me at a $250 a month mortgage payment. Once this is remodeled I will put it up for rent as a 3bd 2ba (currently a 2bd 1ba) that should net me around $450 a month after all expenses. I would like to purchase a 4 plex under an FHA loan and rent out the other units. Being a person that comes from seriously little money im working on trying to purchase another property in the mean time and am looking for some advice.

I have a private lender that is willing to either A) put up the 25% downpayment. B) Go in as partners with an eventual buy out. I have a single member LLC currently set up.

I'm looking for a way to structure borrowing 25% to use it as a downpayment on investment property. All the lenders in my MN area that I have talked to want to see the money season in my account for 6 months. Are there any ways to get around this?

If that route can't be done I would like to discuss how I should structure a partnership on a long term buy and hold with an eventual buy out.

[Tim Swierczek]

@Victor Lebegue seasoning requirements for all loans are 60 days not 6 months.  A few other things I see in your post.  

You cannot finance a conventional loan in the name of an LLC, both Fannie Mae & Freddie Mac prevent it. They also both prohibit you borrowing the money for a down payment on an investment property. You could do it as a partnership but the investor would need to be on the loan and the title.

I think you are saying you have a MHFA conventional loan which is a conventional first time home buyer loan with down payment assistance.  By the terms of your agreement with MHFA, if you move out the DPA funds become immediately due.  Don't risk hiding this as it would cause major complications in your future investing to get charged with mortgage fraud by the state of MN. 

If you still qualify for an FHA why would you not do that before the larger 25% down payment? Ask @John Woodrich who is a CPA.  Your better off using as many low down payment options to start.  

If you do the structure you are talking about you will need to look at a commercial loan or an alt lending loan to buy with an LLC.

Please PM me if you would like to learn more I can help.