Need Help - LLC and Investing

[Ryan Miglin]

Needing your advice

I've wanted to get involved in real estate investing for years now, reading over 30 books in the past 2-3 years. My father recently inherited properties where I am from: Utica/Rome area, NY. This is a great opportunity for me because it take away a lot of the risk and is in a cheaper area to break into the market. I am have trouble obtaining a loan however. I want to obtain it in an LLC so I can start a history in a business so I can obtain financing easier in the more expensive area out here. As I'm sure your aware banks are not lending to new business entities/LLC easily. I've been told by bank of America and a acquaintance who is a mortgage broker that 2 years history since LLC establishment is required.

You see my father does not want to be involved with the property, he was just going to get rid of it. I wanted it though as it would be more profitable to fix up first. However if I purchase from him I believe I would lose the tax benefit he has form inheritance. He has, I believe, a $75,000 tax basis (per tax bill assessment) on the property which he can write off of the sale price. If I purchase from him, say for $25,000, I lose $50,000 worth of write off. So if we formed an LLC together the tax basis would transfer, and I can manage and get a loan on the property. Not only this but more importantly I can start a history of success under a business so I can go forward easier seeking financing in other investments. But the problem is with the banks. Any advice?

I can give many more details but I don't want to make this too long. The risk for this for the banks is sooo low but it's just so hard to get a loan under a new business. If I did take the title under my name and get a loan what do you think about the 203k FHA? But I would then have to hold on to it. (?) Any advice would be TRULY appreciated.