If I understood your original post correctly, you just formed the LLC so you don’t have any real seasoning anyway. The bank will be most concerned with your income (including 75% of the rental income) vs. your debt load. As long as you can show them the cancelled checks for the rent recieved and/or a copy of the lease, they’ll recognize the months that have already elapsed. I’ve refinanced properties originally purchased with cash from partners in as little as 1 month (the time it took me to get it leased) without any problem. Good luck!
Does anyone know of lenders who will lend to a new LLC with a personal guarantee? I have a private loan on a property with a balloon coming due and every lender I talk to says no way to an LLC. I haven’t gone to the local banks yet, but that is next.
With that in mind, can someone guide me as to what I would need to include in a Business Plan for a banker to consider me legit? As the LLC is brand new, I don’t have any history of income for it yet, although the property is rented out.
I probably jumped in too quickly…I set up a single member LLC, got a private loan and bought a property at 70% of FMV in the LLC.
We just formed an LLC, and a local bank (Farmers & Merchants) agreed to work with us. They preapproved us and have given us a variable 7% 1 yr. interest only loan with only $200 in closing costs for each property we buy. There are no prepayment fees involved. Until we sell a few properties and build up our capital, this seemed like a decent way to go. I only found this bank after calling everyone in the phone book, and no one seemed to understand what we needed. We have been very happy with them.
If you really get pressed for time you may just want to quit-claim the property to yourself and then personally refinance it, assuming you are the single member in the LLC. My understanding is many lenders won’t care if you quit-claim the property back to the LLC after the loan is set up, I suggest you consult some attorneys. A few $$ in fees, but it may beat the balloon. Good luck.