BiggerPockets

hello everyone, im new to this forum. sorry to start off with a problem, but this came up out of nowhere.

i am investing in a rental property in las vegas. i went to chase for an investment loan with the title to be held in a llc. they said it was ok, as long as i put 25% down and have a personal guarantee. and a slightly higher rate.

i went into contract with a property for 94,000. we did the apprasial, and waiting for the report. my loan officer said 2 weeks ago, everything is fine as long as the report doesnt come back less than 80,000.

this week, she just called me, saying chase has just changed their guidelines, and cannot close with the entity own. and can only cancel the loan or change it to personal name.

this is my first property, and i donot mind it being in my personal name, but then i would rather not pay a higher rate. the rate right now is 5.375% on a 30yr loan. any advise?

should i continue with the loan in my name, or start a new loan( of course if it is a lower rate). but i have in contract to close before nov 15. a new loan might not make the deadline.

does anyone know the rate right now, so i can compare. of course i would not start a new loan if the rate is only a small difference.

I agree with Curt, not a bad rate, don't risk losing the deal by starting over. You will be hard pressed to find a big bank to loan to your llc - especially with no track record.

Run the numbers... you haven't given us anything to work with. Personally, I would avoid it as it's going to destroy your cash on cash return and for me, that's king. More cash in my pocket each year means more money for additional down payments means additional leverage and greater returns. I'd much rather have the $5,000 or $10,000 today than have $50 extra each month for the next 360 months. Given the incredibly low interest rates today and the depressed market values, today cash is KING. Bring on the inflation baby!

Lender guidelines change all the time however since terms have changed, I would contact the loan officer or his manager and tell them that I want a rate renogation or a post lock rate renogation(sorry bad spelling) usually you can use that to get the rate down.
Just let them know you checked out rates else where and you are already with them but you need a lower rate. Try that before paying for it.

thank you everyone for the advice

we closed on the house this week. $94000, 25% down payment, 5.375% 30 yrs fixed, with 0.25% rebate. closing cost was about $4000.

this house is in las vegas, and im not familiar with how it works there, but the title company said it has been recorded. is there a deed involved? or just the recording. or is it sent to the bank because i have a mortgage? the reason i ask, and not ask the title company or bank, is as i stated on my first post, it was supposed to be put in a llc but changed to my personal name. but on the document forwarded by title company. it says buyer " xxx xxx llc"

this is great for me because this is what i wanted. if it was in my name i would have put it into the llc a few months later. so less work for me.

i think what happened was the title company never received the info that the loan was changed from llc to personal name, and recorded llc name. but the loan was not supposed to close in llc.

no records in county yet, maybe it takes some time before update.

so do i need to be worried, or just leave as is