All Forum Posts by: Sonia Martinez de Simon

I would look into creative financing as interest rates are so high at the moment. A few strategies you could try are seller financing, subject to, or hard money lenders. 

Hope this helps!

@Sonia Martinez de Simon  I will try to answer the majority of your questions in the order that they should happen in. Direct message my account if you have questions. 

1. Contact a local lender and get pre-approval to purchase. It's also important to know if your going to be buying rehab property or turn key. It makes a difference on the loan product your going to look for. No, you cannot use your 3.5% rate, your going to have to settle for current rates. 

2. Find the right deal and get it under contract. 

3. At this point you can create an LLC to receive the property, or you can easily deed it over after closing.

@Sonia Martinez de Simon to start the process, talk with several banks. Local credit unions are usually a great resource. Where I'm at (SE TN) the credit union I bank with only does 20/80 loans for investment property. Meaning I'll need to put down at least 20%. Another local credit union does 15/85 loans, which is 15% down. Keeps more $$ in your pocket, but makes it harder to cash flow. This is why you need to talk with several banks/credit unions. You don't have to put in an application with them, if you talk with an investment loan officer they should be able to tell you what loans are likely available at your credit score.
Once you've found the right fit for a loan, talk with several insurance companies or an insurance broker. Get an umbrella policy that will cover you. This is much cheaper, easier, and a better option that an llc, in most cases. If you really want an llc, see a local business lawyer. Seeing a business lawyer isn't necessarily a bad idea. Locally (SE TN) they're about $180/hour and sometimes the initial consult is free. 
If you see that an llc is a good fit for you, then yes, setup the llc, then get a loan in the name of the llc. If you are going this route, talk with a local lawyer. They will be worth the $$ and you will have a relationship if you need them again, eviction, lease agreement, lease adendum, etc.
This is just the opinion of someone on the internet. It's worth about what you paid for it. :)