Keeping The Foreclosures For Rentals
I have been buying some newer homes at foreclosure. 2-4 years old. I have decided to keep them as rentals. I was looking at borrow out enough money so that they would cash flow. I have one corp for my flips and was in the process of creating another for my rentals. I called some mortgage brokers to get loans, they all told me I could not get a loan for the corporation. The said I would have to have the properties held perosonally and I would be on the note also.
Has anyone run into this? Is there anything I can do to get a loan in the corporation???
Hello,
I see now you are offline, I sent you a pm, but wasn't sure if you were aware of this funtcion yet
top right hand corner of this page...thanks for your time.
Chris
Hiya
I run into this all the time, but the broker is wrong. You can title them in a corp name but you still have to be responsible for the loan personally.
[addsig]
They may be wrong, but they can't get it done.
rwwrr of Beverly Hills.
I am shocked and amazed, how in the world did you find new 2-4 yr old houses in your area of the world.
Almost everything that I have seen on the West Side seems to be upside down. This situation has kept me from building a stable of single family rentals going back almost three years. I used to play King of the Mountain in West Hollywood, but alas no more.
Even the vacant lots, (infill) are so high that Sutters Mill has long been surpassed. You do not even have to pan for it. The dirt itself is golden.
Of course I could go South LA and join the 18th St. Gang, handle nickel bags as a sideline and collect single families there. But to move down there to effect proper management is not how I see myself spending my declining years. Been there, done that.
I have been looking in Pacoima and Sylmar. Insertions are possible there, the area is not as violent but the rents required to service are too high for single working families to handle.
Remember in 1909 it was 18% of income for housing, 1947, 25%, now in some of the near valley areas it is at 50% and, unless a quickey correction occures it is still climbing.
Please post and explain. Lucius
Checking around is always adviseable. A mortgage broker usually only shops the loan around to 3-5 different lenders that they normally work with. There are tens of thousands of lenders. I fthere is equity in the property then I imagine you could find one to make the leap. Additionally, at first a corporation is like a person and needs to build credit, that is why people buy "aged" corporations instead of starting one up. When you have built up credit you will be able to get money.
I am in the process of taking ver a 50 year old corp in another state with a long runnning D&B rating where the owner has died and left everything to his son who is shutting down the business. We will see if I am lucky and pull this one off.
stockpro I know of purchasing shells of publicly traded corporations so you save on the SEC requirements. Private corporations that is a good idea. Nice thinking out of the box.
BTW I may be or have been from that zip code but that doesn't mean thats where I shop for my biz...
There are many banks that do loans in LLC, CORP, DBA, You have options, go to where you do your checking and ask them. Most neighborhood banks do this kind of loan.
There are a few catches:
1) Money in reserves are required
2) Good employment record is required
3) Your LTV will be limited.
Or you can keep calling people, when someone tells me they can do that, I ask them can I call your last 3 closings on this subject. If I broker tells me no then I know they are hiding something. Most people will be glad to use them as references.
Be very careful in this subject, most broker will promise you everything and give you nothing
Lori
[addsig]
I have found that rates and LTV are unacceptable for our business. I appreciate all of your help.