Financing question for out of state rentals

[Carlo D.]

I'm thinking of buying my first out of state rental. Quick question.. if I just incorporated, on what basis would I apply for a loan on? Would it be under the business tax id number which would be brand new (so no history yet) or would it be through me personally through my own credit report/history? What if I have a partner in the business? Thank you in advance.

[Doug Smith]

If you want to buy in the name of the entity, that is fine, but they will also pull your credit and the credit of any significant partners you have. You said "incorporated". I assue S-Corp? You'll want to gather up the Articles of Incorporation, The Bylaws (signed and executed), The Certificate of Standing, and the IRS SS-4 form where you got your Tax ID. You'll also want to register that entity in the State in which you plan to buy property. It will be under the Tax ID,but they will need your (and any other significant owner of the entity)'s social security number and probably a personal financial statement on each of you. They'll want your last 2-3 months of bank statements, your IDs, and property information such as insurance. Tell me more about the property you you're seeking, where you're looking, and what your goals are. Perhaps we all can help guide you. 

[Patrick Drury]

@Carlo D.
If you are buying a property in an LLC the loan is going to be some type of non-qm or DSCR loan. Something to keep in mind is the rate is higher with these. Check the forums for the debates on buying in your personal name and quit claiming it to LLC after closing. This is an option, but it's not for everybody. If you do decide to do it you can get better rates on conventional loans.

[Samuel Diouf]

It would all depend on what loan you're trying to get. Would you want a conventional loan that will be based on your credit and debt to income ratio, or do you want a DSCR loan solely based on the deal you have? If you want conventional, you'll have to buy the deal in your name.