All Forum Posts by: Blake DeNoyer
Blake DeNoyer has started 2 posts and replied 2 times.
Post: Rental Properties are NOT good Investment???
- Investor
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As a real estate investor, it is common to get criticized for investing in real estate versus putting every penny in the stock market (especially from financial planners who want that trade commission/fee). Below is a link to an article written by a web-based financial firm I personally invest with that states that rental properties are poor investments. While every investment possesses its inherent risks, I believe the article fails to address the many advantages of owning real estate, including mortgage interest deductions, possible income off-sets resulting from depreciation, and accelerated growth potential when employing leverage. I would love to hear your perspective on other advantages afforded to real estate investors versus someone who invests 100% in stocks and bonds.
https://blog.wealthfront.com/why-rental-properties-are-not-good-investments/
Post: BRRRR: Can you do a Residential Refi under an LLC?
- Investor
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- Votes 2
As a new investor, I'm considering financing options for the BRRRR strategy. A major concern of mine is protecting my personal assets from any issues that may arise in my real estate dealings. During conversations with a few banks, I was told I could either a.) hold the property under my LLC if I were to use commercial loans OR b.) purchase under my own name and refi using residential mortgages but the LLC could not be utilized. And as you would expect, the banks cautioned against quit claiming the property into the LLC once refinanced under a residential mortgage because the mortgage holder could call the note due to a technical change in ownership.
The financing terms are more advantageous going the residential route but I do not want to continually risk my personal assets each time I buy a property (despite already having an umbrella insurance policy in place).
Does anyone have any insight on the topic or know any loopholes that would allow me to legally purchase investment properties using residential mortgages under my LLC? I have heard that it may be possible within a trust but cannot find much online that discusses this approach.
Thanks!