All Forum Posts by: Nathan Bruce

Thanks John. That's my plan as well. The double closing may be possible but at the end of the day my mortgage will most likely be federally secured and Fannie Mae doesn't do so for LLCs.

More information on getting (or not) a traditional mortgage in the name of an LLC:

Closing in the name of an LLC is not allowed by Fannie Mae or Freddie Mac for conventional mortgages. For the last 4-5 years, essentially all conventional mortgages (about 90%) must meet Fannie Mae or Freddie Mac guidelines. Prior to that, Alt-A loans were available. Some Alt-A programs would allow for the closing in the name of an LLC.

Only if the mortgage company is going to portfolio the loan, could one be done today. Very few banks today are willing to do a portfolio loan.

Both my attorney and lawyer advised to buy in the LLC's name.

Tough getting financing through the LLC these days. Some banks will no longer lend to a LLC with personal guarantee, some will only give variable rate loans and others will give fixed rate but much higher than conventional.

I've decided to purchase in my name with extra liability insurance. Thanks everyone for your input!

Thanks Simon. Good to know. A Wells Fargo banker is who told me I would need the commercial loan. I'll dig deeper on the traditional mortgage.

I am preparing to purchase my first rental property and have a question for the community. Asking the same to my accountant and will post his answer as well.

Should I:
1) Purchase in my name using a personal bank loan then transfer title to the LLC

or

2) Purchase in the LLC name using a commercial loan?

Background:
- I need financing for the purchase.
- I have a registered LLC.
- I have pre-qual for a personal loan and getting the actual mortgage approval should not be a problem.
- I have not talked to a commercial lender yet.

Pros/cons welcome. Thanks!

George P. - Do you ever purchase REOs with HomePath loans, and if so, do the listing agents mandate a buyer's agent?