Buying properties with one llc?

[Jeremy Wray]

I was wondering how many properties you can buy with your llc?

[Frank Patalano]

@Jeremy Wray I'm a little confused by your question. You can own as many properties as you want in one LLC. A better question is how many properties do you Want to own per LLC? If we're talking 4 units or less you might want to put up the five properties in one LLC. If you're talking about a 20 unit, I would open a new LLC for each. Opening a lot of LLCs starts to get expensive but depending on the size of your Holdings it may be worth it.

[Jeremy Wray]

I'm new at this sorry. I thought I heard you're only allowed like 10 or 20 mortgages at one time under your name. Not sure how true that is. Thanks for the response

[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.

[Jeremy Wray]

Thats sounds awesome and clears up a lot. We did a heloc on our personal home and bought  4 different parcels of land with 2 mobile homes on each parcel. They were in rough shape and being torn down and starting our 1st cabin surrounded by woods. My plan was to build the 1st on one parcel with what's left in the heloc then jump from there on to the other parcel and keep going from there. That's the plan as of now. Thanks

[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.

[Randy Janoe]

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. 

[Michael Ablan]

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.

I believe it's just called a blanket loan. Ive done several blanket refinances where my commercial lender will take a handful of properties and refinance them for me onto 1 loan with their bank. I'm currently in the middle of a 3 SFH refinance as we speak. You don't have to do all 10 at once, but the option is there. You could do 50 at once if the bank wanted the business. They have a lot more control on how they invest the banks money.