OfflineHi, I just talked to my banker today about a HeLoc using the equity in my 3 rental properties. Although they are not in the LLC name, I was considering putting them in it, as was advised, for liability purposes. However, my banker said they, nor any bank, would make a HeLoc loan on the LLC, and that I should keep them in my name. She suggested that for liability purposes, my hazard insurance on the properties should be able to carry enough liability ins. for me.
Has anybody else met with this problem?
Thanks,
Jan
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Jan
"...and the Israelites dwelled in the land of Goshen...they acquired land... and they prospered..." (Jan's paraphrase)
Get the HELOC first then quit claim deed the properties into the LLC.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I actually mentioned that to my banker and she covered her ears and said "I didn't hear that!". So, I guess they don't care as long as they don't know that you're doing it.
Good info.
Jan
Jan
"...and the Israelites dwelled in the land of Goshen...they acquired land... and they prospered..." (Jan's paraphrase)
Could you comment on where you got financing for your LLC? As I'm still waiting for any answer from all these lenders I applied to thru the I-Bank site, posted my business plan, I haven't received a thing as its been 15 days. Also been proactive, called some lenders that were given to me and not a call back or email. Went to sites on the web and fill out apps and nothing so far. Still struggling to get 1st property and I feel I'm wasting my time looking at properties if i don't have any preapproval of funds in place. Thanks for any input you might have.
Bruce
I actually don't have the financing yet. I am making application.
As I stated above, my LLC will not get the financing. I will have to make the loan in my name because the bank won't loan money on properties owned by the LLC. So, I am leaving them in my name until I get the financing, then I will consider a quit claim deed to the LLC.
I, basically, went to my local bank where I have some accounts and a relationship with the branch manager. Based on the equity in our properties, we were qualified for the money. She also said, with a good credit scor and our salary, we could get a small unsecured loan (about $25,000) if we wanted it. We may consider that as well.
I haven't used any internet lenders, just using locals.
Best of luck and hope that helps.
JAN
Jan
"...and the Israelites dwelled in the land of Goshen...they acquired land... and they prospered..." (Jan's paraphrase)
Does any have any financing advice to assist me? After recently buying a home for $48k which appraises at $90k 8 months ago. I'm having difficulty getting financing from the bank for a 6 unit multifamily property that they have by using my $42k equity within the home I just previously acquired and financing the rest of the remaining balance. I'm trying to avoid financing fees by not going to a mortgage company for financing. But the bank wants me to rent out the house I just bought, and, that me and my family live in by the way, and move into the multifamliy apartment as a condition before they will consider any financing for me.
Does anyone have any insights or ideas on how to get the bank to go through with financing this multifamily property that will allow me and my family to reside in the home we are currently living in? Please respond as soon as possible I really need to keep this property acquisition going forward with little to no money down.
Thanks in advance for your prompt responses!!!
The PITTS
God Is Good All The Time!!!
Maurice
Are you able to go full documentation or do you need to go stated income? What is your debt to income ration? Have you already acquired the $42,000 equity line on your primary home? What is your fico score? Would you be able to add any additional co-borrowers in case that is needed to make the loan fly? You could consider getting a co-borrower that would be able to move into the property, although maybe far fetched, and then you could go owner occupied and that greatly reduces the down payment needed. I must say that anything above 4 units is much more difficult to obtain financing but if you can answer these questions then I could check with my underwriter tomorrow to see if he has any suggestions. Feel free to PM me if you prefer not to provide this information in this blog area.
I think this question is a rhetorical questions because of the low prices we are dealing with here but you are not in California right? If not, what state are you in? It wasn't in your bio.