All Forum Posts by: Kevin S.

Quote from @Devin Peterson:

Quote from @Kevin S.:

Hi everyone, I am about to create my first (Florida) LLC. My first investment property will be a SFR and loan will be on my name only (income reason). I was told by one lender that the property has to close on my name and transfer to LLC 'after' the closing. In order for the loan not to be called out the LLC has to have me as majority interest. What does that mean? My spouse will be minority interest? Not sure how my spouse will look at it. How do I go about it? Appreciate any advice I can get. Thanks.

You dont NEED an LLC perse, if you are using a full business purpose lender that will not close in the personal name, then that specific lender will have whats called an overlay and closing in the LLC / business name is one of those requirements. There are other DSCR lenders out there that do not mandate that you close under the business name. I will say that the one reason most people want to close under the business name is that a good chunk of DSCR lenders will not report this debt to personal credit. Which means, since its under the name of the business - next time your credit is run the next lender will not see or ask about the debt.

Thanks for your response Devin.  I forgot to mention that the loan is suppose to be a conventional loan not DSCR.  What is an overlay?  Since I am a new investor neither was I aware of DSCR-credit effect nor is that my intention of closing under LLC.  I am trying to find out why one lender told me to close under personal name and transfer to LLC after closing and another told me I can close under LLC.  Both lenders know I will be applying for conventional loan. The lender who told me to transfer 'after' closing also informed me that the LLC should have me as a majority interest or else the loan can be called out.  Since I am married and will have my spouse on the LLC does it mean my spouse will be minority interest in order to satisfy the previous lender's requirement of majority interest? (Loan will be under my name only because of income reason) I am new and still learning from members here.  Thanks. 

Quote from @Greg Scott:

Who told you that you needed to have an LLC if you own a rent property?

Is there no reason at all to have investment property under LLC?

Hi everyone, I am about to create my first (Florida) LLC. My first investment property will be a SFR and loan will be on my name only (income reason). I was told by one lender that the property has to close on my name and transfer to LLC 'after' the closing. In order for the loan not to be called out the LLC has to have me as majority interest. What does that mean? My spouse will be minority interest? Not sure how my spouse will look at it. How do I go about it? Appreciate any advice I can get. Thanks.

Hi everyone. Need some advice from lenders as well as experienced investors. I am getting ready to choose my lender from several I spoke to. Should I choose only one lender to qualify me or more than one? How will my credit be affected if more than one lender do hard credit check? Is it true that multiple lender can do hard check within 45 days without affecting my credit? If so, how many hard checks? Experienced investors, please share how you guys navigate this especially when you buy multiple properties in a year. I am looking to buy my first investment SFR property.

Also, how do I go about it when I have a freeze on my credit?  Can I unfreeze it only for few minutes or hour while lender do the check?  I haven't applied for any loan/mortgage since I put a freeze on my credit.  Don't know how it's done.  Thanks in advance.

Hi Kristen, Have you or your clients actually used this lender or did you just come across them online?  Other lenders require 20-25% down.  What's the catch here?  I tried calling and was only able to leave a message.  Any members here on BP has experience with this lender please share.  Thanks.

Thanks Jake.  Advice taken.  Do I keep 2 accountants, the regular accountant for my small business and a RE accountant as well?  For those who have small business and are RE investors, please chime in.  Thanks.  

Thank you Nate.  

Thank you Evan.  Are you in Florida?

Quote from @Jon K.:

My personal experience was that there is a difference between a "Regular" accountant or bookkeeper and one who understands real estate. Years of headaches and thousands of dollars in expenses from having someone untangle what the last guys did later, I can now confidently say to seek out those who have real estate knowledge.

 Thank you Jon for your input.  Should I still keep the 'regular' accountant for everything non-RE?  Or will the RE accountant become a one-stop shop?  

Quote from @Glen Wiley:

Real estate specific tax law is very complicated and dynamic. We moved from a non-RE specialist to a RE specialist accountant and reduced our taxes by tens of thousands of dollars. Find an expert. We really like ProVision - big firm, lots of resources, they appear to do a good job staying on top of changes.

 Thank you Glen for your input as well as recommendation of ProVision.  Will definitely check them out.