I'm startin my LLC to buy and flip houses and buy and hold. I need an investor friendly bank to begin this venture with. Who would you recommend in the Greensboro area?
@Gina Dovel it may be difficult to obtain financing for buy and hold. If you want to use conventional financing than you would have to originally get the mortgage in your name.
@Jerry Padilla thank you for your response. I have cash for my first property. I'm looking for a bank to set up my business account with that is friendly to RE investors so that when I do need to borrow money I already have a relationship. Is your bank in Greensboro? I need a checking account and I will have a large sum of money to deposit until I purchase my first few properties. Can I buy property in my name and then transfer to LLC?
Also, I was told to find a bank that does portfolio loans.
Gina - Feel free to set up your business checking account with anyone. You will still be free to another bank as a lender.
Regarding lenders, it seems that smaller local banks have more lending flexibility. Try googling "local bank greensboro bank fox" for a list. I was in your shoes looking for local banks in the triangle and found that bank fox had a nice condensed list. Make a list of the banks and their phone numbers, then dial away and ask to speak with a loan officer. While I learned quite a bit using this approach, I learned that it makes more sense to have the deal first. Evidently lenders are not crazy about dealing with hypotheticals.
It's possible to purchase as an individual and use a quitclaim deed to transfer ownership to your LLC. Most banks have a due on sale clause that gives them the right to call the loan. Based on my understanding, it's rarely enforced but always possible.
Note, I'm a newbie so take this info with a grain of salt.
By the way, I'm from Greensboro and familiar with the area. Keep me in mind as a possibility if you and your partner ever want to JV on a flip. I can bring cash to the table as well.
I have done flips and like you used my own money, I found it limited me to a few deals. Also, using banks limits the number of deals you can do. Instead use private investors, determine what you're going to do to the property, get a pre-appraisal (not written, verbal less expensive) to determine ballpark final sale price, then you know parameters of your budget and how much private money you need to borrow. If you really want to deal with banks portfolio lenders, small banks and large credit unions is the way to go.
Or, like me get out of my comfort zone and decided to pursue apartment complexes, more income, more investors, managers and less headaches.
@Gina Dovel as @Adam Ward has said you can use any bank for a business account. Cash is a great way to go if you are flipping. If you plan to keep the property for a but and hold than obtaining a mortgage afterwards is a great way to go.
Here is a link to my blog on cash out financing....
Here us a blog post I wrote on delayed financing.....
As far as banks go. Local lenders are great because they can portfolio if you have trouble getting qualified. Most big banks, but not all, are not investor friendly. There are some that do gear towards investors on a national level.
Gina good to meet you my name is sky Mikesell and I am based in Charlotte
I work with a lender who will finance your buy and hold properties in the LLC ... Rates are NOT hard money rates but also not as favorable as you financing the property under you own ssn and then transferring to an LLC.
Send me pm and I'll be happy to make the introduction
Take care and talk soon
Sky Mikesell, Portfolio Development | [email protected] | 7046223326
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