Posted by michael schindler on August 31, 2004 at 14:06:49:
where do you live now-own or rent? Many insurance agencies won’t insure a rental unless they have the primary house-I just had to switch all of mine over to another carrier because of that…
financing a property as an LLC - Posted by Anthony Bang
Posted by Anthony Bang on August 31, 2004 at 10:56:49:
A partner and I were planning on forming an LLC to start a real estate entrepreneurship. If we are able to come up with the funds for a 20% down payment will it be possible to find lenders that will lend us the money being that it will be our first project. Our credit scores are pretty good.
would appreciate follow-ups
thanks
Anthony Bang
Re: financing a property as an LLC - Posted by michael schindler
Posted by michael schindler on August 31, 2004 at 13:00:26:
Isn’t one of the main reasons of setting up an LLC to keep the liabilities out of your name? If you buy it this way and transfer it, the loan is still in your name and, I believe, so is the potential liability. jesse is right about the commerical loan part of it. If it is your first property, why not just buy it either as a partnership or do 2 individually (individually-better idea) and just add an umbrella policy to include your rentals. If you get a bunch of rentals, then look at transferring it to an LLC or corp. If you have some good cash flow, equity, you might be able to sell the property to the business-but probably not today, get seasoning as an investor with an established track record. Just my opinion…
Re: financing a property as an LLC - Posted by Jesse
Posted by Jesse on August 31, 2004 at 12:43:57:
If you have good scores and the money to put down, you should have no problem getting a loan. The only thing I see in your situation is lenders will want to do your loan as a commercial loan. Get the loan in your name first and then transfer the title to your LLC. You would be able to get a higher LTV and put less money down.
Jesse
Re: financing a property as an LLC - Posted by anthony bang
Posted by anthony bang on August 31, 2004 at 14:02:26:
thanks for the great inputs…now I currently own a condo which I rent out, but since it was the only property I own I had trouble getting insurance on the property as a rental. Any suggestions??