All Forum Posts by: Joel HusVar

i spoke to a motrgage broker today and he told me that a 1-4 unit residential property can NEVER hold a mortgage under the name of an LLC doesn't matter how many assets it has. In the past it was possible but with the market the way it is the banks will not consiter it. He will not even consiter a property for less than 40k (it sounds like a little but I can find over 100 properties under 40k). He wants 10% down.

i spoke to a motrgage broker today and he told me that a 1-4 unit residential property can NEVER hold a mortgage under the name of an LLC doesn't matter how many assets it has. In the past it was possible but with the market the way it is the banks will not consiter it. He will not even consiter a property for less than 40k (it sounds like a little but I can find over 100 properties under 40k). He wants 10% down.

what your saying makes sence and I do not disagree with it at all. Unless I misread you said I can co-sign for the LLC. I will be willing to do that no problem. They told me no LLC will ever get a mortgage unless it's for commercial use. If what your saying is correct in theory I will be willing to borrow one day in the name of the LLC once I make payments and prove I won't default; but for now I'm just co-signing. I plan to put cash into the company day 1 to back loans and also the bank will hold a lein to the property i cannot understand where the bank sees the huge risk. The properties are income bearing also.

I'm tring to get financing however everyone is shutting me down. I've called wells fargo, hsbc, citi, ect and I keep getting the same answer. They will not finance a 2 family property to a LLC; only commercial. They want me to personally guarantee the loans. Whats the point of having the LLC then? I'm looking to open this company and borrow under the company's name. How do I get financing? My debt and also my partners are minimal at most and we both hold jobs we could get personally approved however it defeats the purpose of opening the LLC then. I'm at a stand still and cannot understand why they will not finance. The properties I plan to buy have existing tenants willing to stay and have been there for years. All of the numbers work I just need the financing to make the wheels turn. How is everyone doing it?

I'm tring to get financing however everyone is shutting me down. I've called wells fargo, hsbc, citi, ect and I keep getting the same answer. They will not finance a 2 family property to a LLC. They want me to personally guarantee the loans. Whats the point of having the LLC then? I'm looking to open this company and borrow under the company's name. How do I get financing?

John put it in perfect words

I've planned to #1 quit smoking......did that
and start a r.e. investing company and have 3 properties by 09.......idea set and wheels turning

update: We have began to talk to attorneys, insurance carriers, LLC being formed as a equal 50/50 partnership in writing( monthly jobs created, nothing can be done w/o other's consent) We still must speak with a mortgage broker to see what we can get and start relationships with uhaul, home depot, inspectors, general contractors,ect. We have decided to get our feet wet, we will purchace 2 already rented properties with tenants that with to stay for quick cash flow. Also we have also sparked the idea to potential renters and have 2 other 2 family properties already rented once they are purchased and refinished. I hope to have good news soon. This site has helped me more than I could have imagined. It's jam packed with every senerio.

do you guys feel these numbers work out?

A quick example for what I'm working with
2 unit
asking price $43,000

the rents are $495 down and $450 up
fully rented tenants want to stay