All Forum Posts by: Brandt Welch

 Yea that makes sense! I One caveat that I forgot to mention was that the monthly payment I'm targeting for the second property is such that I could still afford it  and my current home even without any rental income that the second property might generate. I thought this might play a factor in how the underwriter views things, but it doesn't seem like it does.

Hello BP community!

I recently purchased my first home about 8 months ago and I'm looking to buy another in the area to rent out. I had a conversation with a lender this morning and he mentioned that the underwriter for my loan app would consider this an investment property and not a secondary residence, thus forcing a higher down payment (20-25%) and higher interest rate. Another option he mentioned is that I could decided that I want to move in to the new property and instead rent out the home that I purchased last year. I'm young (26), unmarried, and without children so this option is not completely infeasible, but still seems like an awfully inconvenient solution since I just moved in less than a year ago. My question is: how do investors typically go about getting financing for that second property? Is applying for a mortgage as an investment property the way to go or are there other options anyone can suggest?

Thanks in advance!

Hey @Jason Wray , this all makes sense and thank your for the detailed response! As a follow-up, what if the loan for the down payment came from an owner in the LLCs individual finances? Would an underwriter view this differently or it still pretty much the same situation?

Hey Jason - the LLC is not currently profitable. This would be our first property.

Hello BP,

My partners and I are equal owners in an LLC that we intend to use for real estate investing and we're thinking of creative ways of financing a property. An idea we had was to seek out a portfolio loan from a community lender. My understanding is that we would typically be expected to pay somewhere between 20-25% down on a property in this case. We were then thinking of finding another lender to fund a portion of the down payment.

Does this approach sound like it would make sense? Would portfolio lenders not like to see a down payment partially financed by some third party? How difficult would it be to find a lender to help finance a down payment?

Thanks in advance!

I've been researching creating an LLC for real estate investing. I've been watching some videos by Anderson Business Advisors in Youtube (specifically this video: https://www.youtube.com/watch?v=XdSp5GXbiE4) where they suggest creating a member-managed, anonymous LLC in a state such as Wyoming and then creating a member LLC in your operating state. The reason being, this provides the anonymity protections offered in Wyoming while still enabling your operating LLC to own and operate in the state where the property is.

My questions are:

Is the added overhead of this multiple LLC structure worth it?

Is this a legitimate structure?

Are there any drawbacks of this structure that could come up down the line?