Sorry ahead of time if this question has been answered already, I looked and didn't quite get the answer I am looking for.
If I am purchasing MFR using a LLC, how would that work ? It would be a new LLC with no established credit or income, so how would a bank be willing to finance that ?
This is a pet peeve of mine but BP calls anything more than 1 family a "multi-family". That is a very poor way to divide the market.
Is this 2-4 units or 5+ units? It makes a big difference. Anything 2-4 units, from a financing perspective is considered single family and comps are used to assess value.
If 2-4 units, and you are using Fannie Mae, you cannot purchase it in an LLC. If you are using a bank and willing to accept higher interest rates and a short-term balloon, you can buy it in the name of your LLC but you personally will be on the hook.
If this is a true apartment, which is 5+ units, you can buy it through your LLC. Whether or not that has personal recourse is complicated so talk to your financing company.
Sorry I was not aware of this but I was referring to 2-4 units mostly.
Correct me if I'm wrong but if I go to finance as an LLC I'm assuming they will use my personal credit score & income due to being a brand new LLC ?
@Isiah Williams as owner of the LLC they will rate you.
Try a smaller bank that has a commercial lending unit. When I last did this they looked at the personal finances and tax returns for LLC members owning more than 20%. They required a personal guarantee also because the LLC was less than 2 years old and didn't have sufficient income yet.
Since you're nearby, contact me if you'd like specifics.
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