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Updated about 6 years ago on . Most recent reply
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Buying properties with one llc?
I was wondering how many properties you can buy with your llc?
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Originally posted by @Enrique Reyes:
Originally posted by @Michael Ablan:
You're allowed 10 residential mortgages under your name.
Anything purchased in an LLC would be a commerical mortgage, as it's a business buying it, not an individual.
A trick is to get 10 residential mortgages under your name, then refinance them all on a blanket commerical mortgage. Then you can start getting residential mortgages in your name again, since they're all now owned by your LLC company.
is there any reference to this strategy? I would imagine that this strategy has more detail to it in order for a commercial bank to grant a blanket mortgage on 10 individual property under an LLC.
It's really how it sounds.
A note can have more than one piece of collateral.
Refinances focus on appraisal(s) and debt service coverage (typically 1.25x-1.30x. Purchases also focus on cost and will lend to the lower of the 3 values (DSCR, LTC or Appraisal).
If you have a portfolio of 10+ properties chances are you have a couple years of tax returns, equity and lease agreements in place to make a valuation based on DSC. If the business cant cash flow independently, a personal guarantor may be required.