Do I need a LLC for buying a property in FLORIDA

[Kay Kay]

Once you reach 10 FannieMae/QM loans, if you have to buy a property in Florida, is it a must to have a LLC so that I can get a DSCR loan? Can I still get conventional 30 year or 7-6,10-6ARMS without having a LLC started after your 10 FM loans.

If you are in California, you may have to open two LLC - One domestic and one Foreign. Thinking of better options. Please suggest.

[Nick Belsky]

@Kay Kay

It really comes down to the lender and how they are licensed in the state of Florida.  State Laws were recently updated and most non-QM lenders will require an entity to close for investment properties in Florida.  

Many private lenders are getting on board with this as well.  There are still several I've come across that are able to work around this.  I am not an attorney and not familiar with the specifics of why some can and some can't, but I know there were recent changes in the state law that triggered many emails from my network who lend in Florida in regards to this.  

Also, if your LLC is formed in one state, some states will require you to register in the state where the property is located as a foreign entity. You don't necessarily have to form a whole new entity, but register as a foreign one to do business in that state. Texas, for example, you'd have to be registered as a foreign entity, but in Ohio, you wouldn't have to register at all.

Cheers!