Hello BP community!

[Ger Xiong]

Hello BP community! I'm a newbie investor but I'm so excited to get started. I've got about 50k in capital. I want to start an LLC and start buying rental properties. My question is if I'm am LLC buying my first or even more rental properties and I want to get a conventional loan, so would the loan be a 20% down since it's going towards a rental property or would it be the conventional 5% down no mattter how many properties I buy? Also, I'm thinking of purchasing my first rental as a turnkey through rent to retirement. Would that be strictly 20% down payment. Any feedback would be great. Thanks!

[Zach Lemaster]

Hi @Ger Xiong! Welcome! It sounds like you are looking to purchase a rental with a conventional loan, which means you would need to hold the property in your own name and consider an LLC after closing potentially. I'm not an attorney, but we do have RE specific attorney's on staff that have advised us & our clients on this subject. Rental properties always require at least 20% down with conventional loans (fannie/freddie loans). However, there are portfolio loans and other non-conventional loans that you can close in an LLC and may not require a full 20% down. Right now, we have portfolio lender that will finance up to 5 investment properties with anywhere from 0% down to whatever % down you want to put depending on your goals and financial situation. The best advice I can give you is to fully understand all loan options to make sure you are making the best decision to meet your goals. Of course, my team at Rent To Retirement is readily available to answer all your questions on this topic to make sure you are a well informed & educated investor!

We look forward to working with you!

Zach Lemaster  CEO - Rent To Retirement

Some other good forum threads that might be worth reading:

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/92/topics/1116050-a-huge-win-with-cori-from-rent-to-retirement

https://www.biggerpockets.com/...

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal