All Forum Posts by: Zack DeRose

Wow thanks for all the thoughtful responses all! It's been very difficult figuring out the 'rules'/'mechanics' of financing so getting your feedback is awesome!

@Gina Kim - I wanted to go back to your previous message regarding financing with an LLC.

Our first house (cash) is in the process of closing now, with the name of our LLC on the title. From what I understood from your message, we are unable to get a QM if the title has the LLC's name on it.

However, if we are looking to refinance this house down the line, we can work around this by putting the title in my name. We could then get a conventional mortgage in my name for 75% of our property's value.

Finally, after we finish the refinance, we can move the title for the house back into the name of the LLC.

Is there any risk that our mortgage holder will back out if we transfer back to the LLC here? Any time limits before we can refinance or can we do this ASAP? How long does the refinance process last? Am I exposed to more liability if my name is still on the mortgage?

Thanks again v much for taking the time to respond!!

Good to know. To clarify, a 'tax cycle' is 1 calendar year, correct?

My brother and I own an LLC that we are putting our properties under. Can I personally take out a conventional mortgage/refinance against one of the houses our LLC owns? Or does the fact that the house belongs to an LLC limit us to a portfolio loan?

Thanks @Corby Goade and @Jed Haslam-Walker - appreciate the info and your time!

Concerning the limits of mortgages that you can get, when I got my personal loan for my house, the loan was limited by my salary - I couldn't take out more than 3x my yearly salary.

I'm curious, if I pursue loans for investment properties, will that 3x yearly salary rule come into play as a limit for the total amount of loans I can take out?

@Wayne Brooks

@Wayne Brooks@Wayne Brooks@Wayne Brooks

@Corby Goade - they were talking about it in the context of being limited to 10 per person (but getting around it to a limit of 40 when they factor in their partnership and their spouses).

Does a 10 per person limit apply for conventional loans as well? I thought that only applied to Freddie/Fannie mortgages

*edit: episode 382.5!

On the lastest Bigger Pockets podcast (#383), Josiah Smelser mentioned that between him and his partner and their spouses, they had access for 40 Fannie/Freddie mortgages.

I looked into this strategy, seems that in order to qualify for a Fannie/Freddie loan, you need to occupy the property for 1 year.

How is Josiah getting around that?

Appreciate that @Jerry Quintiliano - we're looking to buy distressed properties and renovate. Getting a "Certificate of Occupancy" for our properties is on our radar from some local contacts we've made. This sounds similar to the warnings you raised RE: inspections/building code violations?

Appreciate the response all!

@Jerry Quintiliano - looking at deals in Rochester right now

In the process of registering an LLC now - want to get it set up to buy houses in its name in NY state.

My understanding is that I can register the LLC in any state, but to do business in NY, I may need to buy permits/licenses. Is this correct? Any licenses required to buy a home and then rent it out?