All Forum Posts by: Aleks Gifford

We can not do it as an LLC to begin with as Federal Law forbids it. That is Commercial Lending. It has to be an individual accepting personal responsibility not an entity.

 I am one who does it regularly. 

I would do some more research especially as you do not get to know what property you are buying or the address.

Depends on the terms of the loan and your state this does not apply generally. In many states even if the title transfers the loan is still viable and retains first lien position so the lenders are protected. You as the owner of the LLC do not abdicate your duty to pay the debt because it is a personal obligation. Even if you sell the LLC any other lien would be in second position and you still are individually obligated to the debt you signed for. Prime example couple divorces and one spouse quit claims their share of the family home. They are still responsible for the debt if they were on the loan until such time as it is refinanced in the ex spouses name. Even 20 years later.

Legal stuff first: I am a licensed Sr. Loan Originator NMLS# 1157855 and am currently licensed to originate in IN, OH, KY &FL. If you are not in those states what I say may or may not apply to you. Please consult an adviser in your state. That being said this sounds like a good start. Keep in mind if you go say FHA with 3.5% down your payment is going to be higher. If you go say Conventional Conforming with 20% down you payment will be lower. Your cost will also be lower besides the fact you don't have MI you won't have the MI for the life of the loan like you will with FHA.

My investors do loan under their name then quit claim to LLC. Keep in mind the term Conventional Lender applies to any Federally Licensed Lending Institution and does either residential or commercial lending.

Legal stuff first: I am a licensed Sr. Loan Originator NMLS# 1157855 and am currently licensed to originate in IN, OH, KY &FL. If you are not in those states what I say may or may not apply to you. Please consult an adviser in your state. That being said by it as a primary home. You can use the FHA with 3.5% down to get it. If you go with a regular 20% down you can do it as a primary and then quit claim it to the LLC. Your loans are always better for Owner Occupied (OO) versus investments. Many lenders will let you have up to 10 properties. Personally however if you are moving out in less than 6 months they may raise their eyebrows.

The cash offer is true but many conventional lenders will do a rehab loan for investment properties at lower rates than private especially as he is doing it under an LLC. Chase has a rather nice investment property package loan. (I don't work for Chase.)

Legal stuff first: I am a licensed Sr. Loan Originator NMLS# 1157855 and am currently licensed to originate in IN, OH, KY &FL. If you are not in those states what I say may or may not apply to you. Please consult an adviser in your state. That being said No Dont Stop Payments. It sounds like the property maybe headed to probate unless their was a will or an Estate Executor. As for buying the house the heirs can sell it to you for enough to cover the mortgage. Don't try to get funny with the balance as it just a bad road to go down starting out crooked Pay the estate what they ask and clear the mortgage.

 Why would you want to go private over conventional?