Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago on . Most recent reply

User Stats

55
Posts
38
Votes
Jonathan Edmund
  • North Myrtle Beach, SC
38
Votes |
55
Posts

Help With Owner Financing and Refinancing After Seasoning

Jonathan Edmund
  • North Myrtle Beach, SC
Posted

So I am looking to purchase my first investment property. I think I'm going to owner finance it for a year or 6 months first so I can buy it under my LLC instead of my personal name. I'm assuming after seasoning for 6 months or a year, I can apply for traditional financing under my LLC and make the purchase.

1. The LLC has no credit or anything, so when refinancing, how will the lender use any data to determine if i'm eligible for a loan on the property?

2. The property is already rented and I'm probably going to give the owner 10% down and have him hold a note for a year with a balloon payment. Do I have to put another down payment down to refinance? I'm trying to figure this out where I use as little of my own money as possible. I want to use the equity in this property to buy another property later on but don't want to come out of pocket for 10% to him then another 20% when I refinance since it's already rented.

3. Any tips on how to work out the owner financing?

4. Should I just buy it under my name instead and not do owner financing or would there be a benefit since he's willing to do so?

Any feedback from lenders/investors would be greatly appreciated!!! 

  • Jonathan Edmund
  • Most Popular Reply

    User Stats

    1,152
    Posts
    378
    Votes
    Melvin List
    • Lender
    • Tampa, FL
    378
    Votes |
    1,152
    Posts
    Melvin List
    • Lender
    • Tampa, FL
    Replied

    @Jonathan Edmund I am not sure what the owners terms are but I would assume they will not be better than going with a conventional mortgage.

    • Melvin List
    business profile image
    C2 Financial

    Loading replies...