I'm looking for some creative advice. I am just starting to invest in small multifamily units in Fort Worth Texas and I happen to stumble across a great deal. In short, I found a duplex that the owner was also trying to sell 3 other properties and was willing to whole sell them for 65K per property. The ARV's for the properties ranged from 115K – 135K and around $50/sq. foot. Each property had a range of repairs, but I still figured it was a good deal since it was so below market. The catch is, I'm currently in the process of buying my own home and my mortgage broker said if I invest now it will be difficult to get my personal mortgage because it will affect my DTI. Even borrowing from a Hard money loner would still affect my ability to get a personal mortgage since they will pull my credit. I also considered creating an LLC with my partner but then my mortgage broker said that they do not refinance with LLC's (we were planning on using the BRRRR concept). Is there a creative workaround to start investing now, I feel like there are good opportunities that I am missing out on or is it a wait it out the type of situation?
Thanks In Advance
Hello and welcome to this site Lauren!The more units you purchase the easier it is because each vacancy will not hurt too much. The statement about needing experience before you should get into apartment complexes is a myth. Banks usually require to use your personal name on the purchase contract. After you close you can just transfer to your created business entity unless your purchase agreement prohibits that. Not all Hard Money Lenders require your personal credit report or score. Good luck to you!
Thank you, Michael! That is very interesting, I never knew you could transfer to your LLC after you close, that is very helpful!