My partner and I are new investors and recently started an investment company. We're looking into purchasing our fist property as a business. Our company has no line of credit being that we a fairly new. The question is what is the best way that we can go about purchasing this house?
Are you trying to buy or wholesale this property? You posted in the wholesaling forum.
If you're buying with cash its easy. Form your entity, put the cash into its bank account, and make offers in the entity's name.
If you need a mortgage, things are more complex. You will need to find a bank that will lend to an entity. Most won't, so you'll need to make a LOT of calls to find one that will. You will need 20% down, maybe more. You will be looking at a shorter amortization period, 15-20 years, probably and maybe adjustable rates or a balloon. And you will have to give personal guarantees.
I do apologize @Jon Holdman I am trying to buy this property. We are not buying with cash so having a mortgage would probably be our only option? I do appreciate your response..... Making phone calls as we speak. Do you suggest a hard money lender?
OK, moved this to the Buying and Selling forum.
Hard money can be useful for buy and hold property if the property is in poor condition. You buy with hard money, rehab, hold for a while (plan for a year, but you might be able to do it quicker) and then refinance. Hard money is too expensive for long term holding.
Thanks. This information is very useful. So hypothetically speaking if we don't find a bank that would lend to this entity, do you suggest taking out a personal loan and then eventually transfer the house under the business or would that require too much money to do so.
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