Posted by Shaun on February 26, 2006 at 09:02:50:
One of my investor clients considered doing the same thing as far as the LLC to help tax purposes. We ended up doing the initial purchase contract and loan in the individuals name and then after the loan is done, he quit claim deeded the LLC to the title. Feel free to email me if you have anymore questions, I do loans in PA also.
Mortgage for LLC - Posted by Bruce C. ¶
Posted by Bruce C. ¶ on February 25, 2006 at 20:00:51:
My partner and I are in the process of forming an LLC in PA to place our residential investment rental properties (single family homes which we plan to hold for the long term). We have zeroed in on a couple of neighborhoods and are able to locate good deals.
Now that we are looking into financing we are finding that applying for a mortgage in the name of our LLC has limited our options drastically and increased the interest rates being offerred. In some cases we’re being told that lenders do not want to deal with an LLC at all or limit the LTV to 65 or 70%. In other cases we are told we can only get 5 or 7 year commitment on rate, or rates 1 or more point higher than market rates.
We both have excellent credit, FICOS above 770.
Does anyone have any feedback or on this? Any advice, tips or leads on lenders who look kindly on LLC’s and deal with residential properties in PA? Or different experiences than what we have run into?
Thanks!
Re: Mortgage for LLC - Posted by TomC (Md)
Posted by TomC (Md) on February 28, 2006 at 16:17:37:
I just refi-ed two rental properties (in MD) that are held in my LLC with Washington Mutual. The rates were good and the process was hassle-free.
The only downside was that they won’t do 15 or 30-year fixed rate notes for LLC’s. I ended up using 5/1 ARMs with a rate somewhere around 6%.
Regards,
TomC