All Forum Posts by: Hoi L.

 @Kerry Baird

Thanks for your info!

Would putting the title/deed under the LLC after the loan closing under my name trigger the lender to call the loan? Heard that they have the legality to do it due to loss of cause, but the banks don't usually do it if the borrower has a good record in paying their debt with good credit history.

Thanks for your advice. 

So, I think I would need to start showing a consistent rental income through the LLC (preferably 2 years, but at least 6 months) for any lender to feel comfortable to lend/cash out refinance for my property/ies? Now that you have a series LLC with holding company, do you have to guarantee personally on those loans to your LLC properties? Still have an umbrella policy too? Thanks for all your advice!

Hello fellow BP friends!

Just agreed on our first residential SFP and waiting for the closing in mid-November. Wondering if I should buy it through our newly setup LLC or buy it under our name.

Background:

-we are both physicians practicing for greater than 10 years, have multiple assets via outside investments and collectible cars, etc, so we set up a LLC for the REI venture

-obtained HELOC (primary residence) for $164k fixed at 3.39% for 30 years ($726/mo) through our long-term bank (since 2007)

-buying our first investment residential property for $215k all cash, due to multiple bids SFP with seller choosing us due to cash buy and they rejected a higher offer that required mortgage contingency (BP calculator: +$145/mo cash flow after HELOC, expenses, etc)

1. We are looking to use this 100% owned SFP and get a cash-out refinance/HELOC and use the capital to buy another property, etc

2. Should we buy it under our LLC or under our name and then transfer it to our LLC after refinance?

I know that some recommendations are use "quitclaim" deed transfer, or transfer it to my LLC after cash-out-refinance under my name and risk the mortgage company calling the loan, or simply keep it under our names and buy an umbrella policy, etc

What would you choose/recommend?

thanks!

@Alan Nelson My loan officer at the local PNC branch worked out some numbers for me. The LTV ratio is <80% and she helped me to ensure that the variable rate can be "fixed" once 100% disbursed at the SAME rate for 30 years, 3.14%, as the current variable rate at 3.14%. If I wanted to fix it for 15-yr, then 2.84%, and 10 yr at 2.64%. It is at the PNC branch at Concordville PA, by West Chester PA. Hope this helps.

10/14 closing on a 30 yr HELOC with fixed rate after disbursement at 3.14%!

Thank you all for your help and advice!

I know. When I bought my first house in 2007, interests were ~6-7% and it was low. Refinanced once at 5% before selling in 2014. Now, my current house is refinanced at 1.95% (1.98 APR).

Another thing I should mention: I am planning to retire in 15 years from my regular job and hopefully, I don't go chasing for more investment units by then also.  Therefore, just looking for the lowest 15 yr rate.

Thanks for the continual advice and pointers.  

Keep them coming!

The reason I felt 3.15% was too high for now is because I qualified and was in application to get a 15 yr mortgage for an investment property at 3.0% already, so HELOC at 3.15% wouldn't make sense for now.

Thank you for the quick response.  

So what you're saying is: if I choose a 30yr term, even if I take out the whole $160k at a higher rate (3.1 vs 2.2), the difference in total interests paid in 6 months is $720?  And I can do it over and over again?  Also, the $160k rate at 3.1% is held for the next 30 yr with only p/i payments during the time the money is out of the account?

thanks