OfflineI created an LLC a year ago, purchased a property cash, rehab it and rented, which generates a nice positive cash flow and its value has nearly double since purchased. the problem I now face is that I cannot find a lender that will loan on a property owned by my LLC. I was told by numerous banks and brokers that I need to transfer to my personal name, then seasoned(hold) title for six months before they could do a cash out refinance. I purchased the property under my LLC as suggested and what I learned from dean's success academy, unfortunately my time ran out from dean's success academy so I can not longer ask a coach, that's why I am turning to dean's students for help.
if anyone out there knows a lender please share the info.
thank you in advanced
and good luck in your real estate journey.
Jose Gonzalez
if anyone out there knows a lender please share the info.
thank you in advanced
and good luck in your real estate journey.
Jose Gonzalez
Jose and others,
Here is the trouble: banks want someone to hang. If you do not pay on a loan they can come after your credit, the property and possibly your money. They like this, it gives them security.
If you use an llc for a loan they lose this security. Because of this banks want a business credit score and great tax returns (which most small companies do not have). These cash out refinances for an llc may be hard to find.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Jose I will sell the property and carry the note with a large down. You will have no repairs, ins, taxes or any other problem with it again. You can sell for retail and make interest as well over the next 10-20-30 years. If they stop paying they forfit their down and you take it back and do it again. I have done several of these and have only had to take one back...NOW GO GET SOME
Not having a goal is worse than not setting one..
http://www.deangraziosi.com/real-estate-forums/investing-journals/92139/... -
http://www.deansmedia.com/play.php?vid=266
I would transfer title of property to your name, then look for a bank that does no seasoning refinances; it's easier to find a bank that does no seasoning refis than one that lends to LLC's; most (if not all) banks stopped dong loans for LLCs because they did so many of those during the housing bubble but then couldn't go after the individuals to collect the money owed because the homeowners just filed bankruptcy for their LLCs...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
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Jose...I have a lender who can help you out. PM me.
I've found a great resource that you can use to shop for your own loan. This website was designed for mortgage brokers to post loan scenarios from their clients, and lenders to respond. The Website is www.scotsmanguide.com. Go to the website, scroll down to either the Residential Edition or Commercial Edition. You will not be able to post your loan needs, but you can go to "View Posts" and look at the loan requests that have been posted by mortgage brokers. There are tens of thousands of these posts. Look for posts that resemble your project, and then look to see if there have been any REPLIES to that post. If there are, click to open the posting and view detail, at the bottom of the posting will be the replies, including the name of the person, the lender they represent, and their email and phone number.
Contact that person, tell them you are not a mortgage broker, but that you are a principal in a property purchase, and would like to run your scenario past them, or whoever they refer you to, to see if they may be interested in this project. The lenders on Scotsman Guide are aggressively responding to postings and are more likely to have some flexibility in their programs. Hope this connects you with someone who can assist.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall