Johnson City, TN · Member since 2018 · 5 posts · 0 votes
Hey, my name is Dalmar Brooks, I've been reading/listening to bigger pockets over the last few months. my problem is I just started a business and all the banks I have gone to for a mortgage loan turned me down. I'm here wondering if anyone could possibly have any ideas on what I could do?
Dalmar Segrest-Brooks what was the denial reason? That will help determine best course of action?
If you are new you may need to buy in your personal name and then transfer the deed into the LLC.
Also, I suggest using a mortgage broker!! They shop your profile to several banks!! Saves you time and possibly money!
Dalmar Segrest-Brooks what was the denial reason? That will help determine best course of action?
If you are new you may need to buy in your personal name and then transfer the deed into the LLC.
Also, I suggest using a mortgage broker!! They shop your profile to several banks!! Saves you time and possibly money!
@Ibn Abney Denial reason was that my business is under 2 years old. I am trying to get it in my name then transfer the deed to the LLC. Wow, I had no idea mortgage brokers even existed... I just watch a video on it... I will definitely try that sir. @David Hildebrandt
@David Hildebrandt Yes it really is frustrating. This is my first home so I am looking to get a 4 plex with my Va loan from the military I am only national guard though so my monthly checks aren't enough to get approved and they wouldn't even consider my business income. I then plan to live in one of the units and rent the other 3 out.
To both of you Thank you for replying so fast I had no clue the community was really this awesome... thank you guys so much XD
There are a few places out there like Lima One Capital. I have never used them, but they might have a product that could act as a bridge to get to your VA loan.
@Dalmar Segrest-Brooks I was in the same situation as you before. What I recommend is talking to local banks in the area. Smaller banks will let you invest in properties and write your LLC name as the owner of the home. The key is to keep calling banks that work for you. Be persistent. Once you find a great bank, stick with them. Building a relationship with the same bank will open up doors for more creative financing options down the road (less than 25% down, rehab loans, HELOCS, ect). Best of luck.
@Dalmar Segrest-Brooks statistically speaking most new businesses will fail within the first year or two. The bank isn't going to take a risk when the odds are less than 50% in their favor. You make it two years and odds are better you will be around long term. Talk to every local bank and see if someone is willing to underwrite and keep the loan in house. Small banks often approve loans by committee, so if you can convince them you are worth taking a chance on, someone will give you a loan. Talk to every bank and be open and honest. Show them proof of your income and open up your books for them to review if needed. Tell them if they work with you, that you will move all your business banking to be with them. Instead of looking for a loan, present it as looking for a banking partner.
@Joe Splitrock Ok I definitely will present it as looking for a banking partner from now on. Thank you, sir, for taking the time to not only to explain why but to pass on some hope as well XD