Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Daniel Watts

Daniel Watts has started 2 posts and replied 2 times.

Hello BP,

I am currently under contract with 3 partners to purchase a cash flowing duplex. This is our first investment and we have been learning a lot as we go through getting financing. We have an LLC but the lenders have more favorable options if we borrow as four individuals. My question is if there is a way to invest in the project without impact my personal debt to income ratio? My wife and I do not earn very much money right now but we have been able to save quite a bit so the 30k to invest in the partnership would not break the bank. However, we would like to buy a house in the next six months and would like to figure out a way to keep the investment off the books... Is this possible?

Hey BP,

I am part of a 3 member LLC that is currently under contract on a duplex we plan to buy and hold as a non owner occupied rental property. This is our first property and as we start looking at the financing options we have some questions...

Option 1) Take title as 3 individuals and they want 25% down on a 30yr fixed. - I understand that we have the option to move the title into the LLC. What does that process look like? Is the risk of being called due higher if we live in a very small rural area? And, is there a penalty for being called due other than just finding a new financing option?

2) If we purchase as an LLC the bank wants 35% down for 30yr, 5/1 ARM or 7/1 ARM and personal guarantees.

***Sidenote - 35% down will mean that two of the partners will have to put more cash down to cover the third. Any ideas for helping the 3rd partner get to equal ownership? 

Is one of these more favorable than another for new investors looking to make our first investment as straightforward and predictable as possible, while also trying to protect ourselves, our investment, and ourselves FROM our investment?

Any input is helpful!

Thanks