Difficulties In Lending
I am having a terriffic time trying to get financing for my new LLC. I am in my twenties and want to purchase more rental properties. I have a part time job not worth mentioning, but plenty of cash and I own a rental unit owned outright at 200,000$ est. value and my own home at 210,00$ my credit is average and my education is high school. Creditors are cringing at me!! What is the best thing to do and how? Line of credit? 1st mortgage on the rental and use the cash for large down payments so I get apporved?
You said you are looking for financing for your new LLC. Explain what that means. Are you looking for a line of credit for your LLC with no collateral? have you found a property you wish to purchase and the lender won't lend to the LLC? Please explain in more detail what you want to do.
The rental I currently own is in my name and not the company's. I have a property wish to purchase. And I want to either have the rental as collateral OR get a first morgage on that property ( it's owned 100%) and free up some of the money to put a larger down payment down So that I can get approved for the next property which I want to put in the company name. So the banks want a projection which I am not sure how to do since I don't know the best way to handle this matter.
Okay. Step 1 is to get an asset protection attorney on your team. You should not have a rental in your name. If someone on that property slips and falls, not only could you lose the rental, but you could lose your house, and all of your other personal assets.
Now with regard to the second property, I have found most lenders do not want to lend to an LLC. As a result, you need to first take title in your name to satisfy the lender, then transfer that real estate into your LLC, or other asset protection vehicle. Again you need an attorney who is experienced in real estate and asset protection on your team.
The property is now already in the LLC name on advice of my attourney. So ..oops..I guess I just made it harder on my self. At this point is it better for me to get a first mortgage on the rental to free up money ? The guy a the bank sort of loosened up when I told him I no longer wanted a line of credit.