All Forum Posts by: J. Pablo Fernández

Hello,

I have a company, an LLC, that has owned a property for 5 years, which has been cashflowing for 5 years, and appreciated in value a lot during that time. I was using Bank of America as my bank, so they can see the money coming into the account and piling up. I call them to get a mortgage on that property to use the money to buy another. Their answer was "We don't offer loans to companies unless their revenue is 100k/year or more". I don't think we are talking about the same things at all. That sounds like unsecured loans. It's like they didn't know mortgages exist.

They told me to go talk with personal banking (not an option to me because I'm not a US person, I don't have a SSN or credit history).

Is this correct, banks just don't offer mortgages to commercial entities to the point where their workers don't even have them in their radar? I feel like this can't be the case, but it's not my first time attempting this, and I feel like I'm doing something wrong.

Hello,

One of my registered agents used to make and charge me for making yearly minutes for WY and IN. I since they moved to another registered agent, in IN, and they don't seem to offer the service (they also seem confused about me asking for this).

Is this something needed? it was quite expensive all things considered. If it is needed, who should do it? accountants? attorneys? my PA?

@Frank Chin@Frank Chin I guess the question is how do I get portfolio loans, how do I find these banks, when would they be happy to talk to me.

@Kris L. they are for single family homes.

Hello,

I have an LLC that owns another LLC that owns a property outright. It's cashflowing nicely every month and yet, if I want a mortgage, the banks ask for my credit record. At what point do they start treating me as a business instead of a person, and look at my books instead of my credit record?

The reason I ask is because I don't have a credit record, I live abroad, I'm not a US person, so, this is completely hindering my ability to BRRRR. I'm trying to get creative with the financing but if I can't get a bank to give me a mortgage at some point, I'd have a lot of trouble making this work.

I have one property rented out that is cashflowing nicely ($690 a month, Zillow valuation $83k) and now I want my second one.

I like in the UK, investing in the US, so, the usual lenders won't lend me any money on either side of the pond. I still intend to make this work though.

I have a limited company in the UK in which I have around $23k of profit that I don't intend to use for anything other than real estate investing. I want to lend that money from UK company to my US company. On the UK side, it seems the only request is that it's 2.3% interest and reasonable, so, 2.3% and 25 years, that's $100 per month. I know it's a long term and I end up paying $7k in interest or so, but I'm paying myself, so, I'm happy with that.

Then I intend to buy a $70k property using seller finance, plus the rehab, with my $23k. I still don't know what terms makes seller financing happen generally. I hope the deposit can be $10k or less and to use the rest for rehabbing and buffer.

I have a good job with a good salary, so, if things go south a bit, I can cover a bit of the payments with my salary.

My plan after that would be to attempt once again to get a lender in the US to lend me money on my two properties, one which I don't have any mortgage on, and the other which I would be essentially refinancing, and from there, buy my third.

I'm sure after my third, some of the potential investors I'm talking to will be more interested in my business.

Is this plan sound? Any tweaks?

These are yearly costs, so, it's eating away one month of rent a year.

I'm trying to save some money to increase my ROI. I currently have one LLC in WY which owns an LLC in Indiana that owns a property. I'm not a resident on the US, so, I'm using a company to help have a presence in the US, but the expenses are starting to hurt.
They are charging me:

Minutes preparation in IN $150.00
Registered Agent Fee in IN $125.00
Admin fee in WY $35.00
Minute preparation in WY $150.00
Registered agent fee in WY $125.00
WY Filing fee in WY $52

and with that a month of rent is gone.

So, my first question is, do I need to do the minute preparation every year?

Do I need the register agent? I guess so. Is that a reasonable price for it?

@Josh C. what I don't understand is, they are happy to loan on a property against an income for a person, but not on a property against the rental income on an LLC? I guess in a couple of years I'll start getting commercial non-mortgage loans. I'm not so interested on the hard-money, as I plan to get those locally here in the UK.

I'm not really after fix and flip. I own one property free and clear and I want to use it to get the next one. I do have a bank account in the US for my LLC. What sort of lenders would do this kind of lending?

Yeah, I can't get a mortgage in my name; and also, I wouldn't want to have the properties flow through my name. Is that what people doing BRRRR are generally doing?