Buy brrrr property in personal name or corporation name?

4 Replies

I’m looking into my first brrrr property. I’m using a heloc from my personal address to get started. Is there any down side as far as refinancing goes if I buy the home in a corporation name that I set up ? What’s the advantages and disadvantages to personal name vs corporate name ?

@Chris Rogers Most banks are going to want to lend to a person, not a business. If you are about to do a BRRRR my advice would be to talk to lots of mortgage bankers. Ask lots of questions and compare their products. They can vary quite a bit. Talk to smaller (community) banks and credit unions. They are more likely to have better rates for an investor on a cash out. Make sure you keep yourself in a place to qualify for a loan in 6 months. That's the typical time period they're going to make you wait before lending based on appraised value.

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@Chris Rogers commercial loans are usually ARMs and 20 year amortization with higher interest rates.

Personal loans are a bit lower in interest and you will get a higher LTV and additional financing options.