I am a 24 year old first time investor. I have partnered up with two of my friends to buy our first rental property and run the BRRR strategy. The issue we are running into is every mortgage broker and banker is telling us we wont be able to secure any sort of refinancing since we will have property split three ways. So my question is how do we properly structure our financing and refinancing for our three way partnership? We plan to keep running the BRRR strategy over multiple properties but are worried about issues when it comes to refinancing.
Investor · Member since 2020 · 324 posts · 278 votes
6y
A couple things. First find a small local bank or credit union that has in house loans. It gets hairy when lenders sell over the mortgages to bigger institutions. Second make sure the llc is all set up and you have clear roles. The best part of this is, the llc makes the profits. However, the llc splits the profits after that is up to you. The key is focus on the llc being profitable from the deals cash flow, not what you all get.
Additionally, have an example property when you meet with the small local bank/credit union. Finally, have a personal financial statement put together for each of the 3 llc members. Once you have this dialed down, the right bank will lend to you.