I Have A Question
Hi:
My husband and I have jsut bought our fist investment property in the Seattle area. In the state of Washington you can own up to four properties as an individual.
Can you form an LLC and sell your properties to your company, and get cash out of them that way and then as individuals purchase four more properties and do the same thing?
I thought it sounded kind of odd, but I wanted to see what people here thought, and if this is even legal, and is it legal to sell from a private individual to a corporate entity and back again?
Andrea
Wiz, and all the rest of the members on this forum:
Thank ou for your responses. I did some more asking. Legalease became confusing to me. You become an investor after 4 properties as I researched more,a nd yes some companies have limits to how many loans with them you can have, others do not. You have to get a commercial loan after you own 4 units. But before that just a non owner occupied is okay. So well hey I am learning.
It takes me a minute or two sometimes but I am getting there!
Snappy the gator with an attitude.
I think your research needs more clarification.
For residential lending purposes, you are an investor if you are purchasing a non-owner occupied property, whether it is your first or your tenth.
A lender might have a limit of four on the number of residential loans they will make to a single investor. Countrywide is such a lender. No problem, For your fifth property, go to a different lender.
If your loans are "conforminng" loans, that is loans sold to Fannie Mae or Freddie Mac, then the total number of loans you may have in your name regardless of the number from a single lender is ten. For your 11th investment property loan, you have to seek a non-conforming loan originator. Mortgage loan brokers should have several lenders in their pipeline. Washington Mutual is one lender that will give an investor up to 20 loans or a combined loan debt of $2 million, whichever you hit first.
If you are seeking a loan for purchasing more than four dwelling units in a single package, you have crossed the line between consumer lending and commercial lending. If you want to buy a five-plex or larger property, or even five or more single family dwellings with a single loan, then you need a commercial loan.
Consumer loans can be made on residential properties consisting of one to four units. Even if you are buying your fifth duplex, you should still seek a consumer loan as an investor from your residential loan originator.
Hey Newkid ,
When do u go from investor to Dealer status ?
[addsig]