What are today interest rates for investment property under a LLC

71 Replies

Hey BP,

What are today interest rates for an investment property under a LLC?

I'd be interested to hear about this as well. And about how big a portfolio folks had before they were able to start buying property under their LLC. I have an LLC, but my lender won't loan to an LLC.

Hey @Megan Greathouse , If you want to buy under your LLC you will have to use a Hardmoney Lender or look for a Mortgage broker, they can help you in your search.

@Account Closed ... got it. Good to know! Sorry I couldn't help answer your question... but thank you for answering one of mine!

@Megan Greathouse I think you need to find a new lender. There's plenty of small, local branches that will lend to LLC's. To answer OP's original question we're at 5% from traditional lenders. Hard money is 10% or higher.

@Nick C. , Do you think a bank will let me refinance my property which is currently under my LLC to my personal name? In order for me to get a lower interest rate.

@Account Closed Your best bet is to ask around. If you hear 50 "no's" ask 50 more banks. All you need is 1 to say yes. Stay local and small, there you will have the best luck.

They vary as widely as do commercial properties. To get a rate in the 4's you need an 800 FICO and a property that debt services flawlessly with national AAA tenants. The rate is determined by a combination of your personal credit, the property, the rent roll, and the LTV. Sorry - I know not a very specific example.

@Nick C. ... thanks for the feedback. My lender is local, but I'll definitely keep looking. Do you think the small, local branches want to see a larger portfolio of cash flowing properties before they'll lend to the LLC? I only have one SFH rental so far, and it's under my name.

I refi'd a 4-unit three weeks ago under an LLC. 5% fixed for 5yrs. 25yr amort but I will pay it more aggressively than that.

@Megan Greathouse It all depends on the lender. I can give you generalities, but every lender is different. Speak to as many of them as you can. You'll figure out very quickly which ones you can work with and which ones you can't. And as your portfolio and goals change, so will your options. 

I'm a commercial real estate appraiser and we survey lenders frequently to keep tabs on the market. Most lenders in my market are in the 4.25% to 5.00% range on single family and multi family investments. I closed on two deals earlier this year at 4.65% fixed for 10 years, based on an 80% ltv and a 25 year amortization. I agree with Nick, stay small and local. They are much more willing to deal with a smaller investor. Credit unions in particular are awesome because they don't have to play by the same rules as a traditional bank.

Anyone know a lender that does HELOCs (Home Equity Line of Credit) on Single Family Home Investment Properties that I already own. I'm getting "No's" on all my calls. 

Thanks, @Nick C. ! Appreciate it.

Hi @Megan Greathouse

@Nick C. is correct. There are lenders out there who not only lend to your LLC, but actually prefer it. These lenders are an incredible alternative to hard money because they don't cost nearly as much. What are your real estate goals this year?

Thank you, @Mario Navarrete . My goal this year is to buy at least two multi-family homes (2 - 4 units each) in the St. Louis area. I'm interested in the BRRRR method, so looking for places that need a little work. I am also interested in potentially flipping a single-family home to help generate more capital for additional buy and hold investments.

What I'm seeing in my area is 5-6.5%, 20-year Amm, 5-7 year balloon, and you still need to personally guarantee.  It all depends on where you go.  My experience is with a smaller bank.  I think there are some folks out there doing longer amm (maybe with higher interest), but that range is a good starting point.  If you fall within that, you can be sure you aren't being gouged.

@Justin B. are you refinancing under your LLC?

Do you mind sharing who you refinance with on this post or send me a message. I would truly appreciate the information.

I been working with a Mortgage broker who told me I had two options and I'm guessing within his capital partners. Get a ARM loan 7.1, 7.65 interest rate. I do not feel comfortable getting a ARM. He told me most investors get ARM loans when they use an LLC is this correct? The other option is getting a fixed loan but the interest rate for 30yrs is 8.25%. I think that is to high for today market, and it is also under my LLC. Can you guys let me know if you think he is trying to take advantage of my wife and me...

Booker Mcarthur I doing a cash out refi 30yrs @5.125% 70ltv and .25 PTs two family.

I can't imagine why they would be so high.

@Matt M. Do you think it is because I am refinancing under my LLC? I have a excellent credit score as well.

ANYONE else please feel free to join this topic and give input...

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if your credit score and debt to income ratio are good then it shouldn't matter if it's in your name or the llc if your personally guaranteeing the loan.

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