Loan Options in Reno, NV

[Robert Washington]

Biggerpockets family,

Good evening. I'm looking to form a series LLC to purchase property in Reno NV. That being said, will/can banks provide a business loan or will I have to go through the normal process of getting a mortgage?

Thanks for any guidance, I'm new to this and I'm hoping this question makes sense.

[Jesse Holsapple]

Most private/hard money lenders will only lend directly to your business entity. 
Most will still check your credit, but won't need things like your personal income statements. 
Would be happy to chat. 

[Bill Schrimpf]

@Robert Washington - From your question, I'm assuming this would be a new entity, and you have not done this before. What kind of property, SFR or commercial?

It may be difficult to obtain a mortgage note in the LLC name, particularly using series LLC. The harder it is for the lender underwriter to understand the ownership, the less likely they are to approve. For SFR's, if you're looking to shield liability, you can purchase in your name and transfer the asset to the LLC. A good attorney can do this for a nominal fee.

I'm not a lender, but if you would like the names of some in Reno that work with investors, give me a call.  We can discuss your goals and I can refer you on to 2 or more lenders that may be a good fit.

Are you just now starting out? Running a series LLC is good on paper, but in practical terms, it may be cumbersome and expensive.

[Robert Washington]

Quote from @Bill Schrimpf:

@Robert Washington - From your question, I'm assuming this would be a new entity, and you have not done this before. What kind of property, SFR or commercial?

It may be difficult to obtain a mortgage note in the LLC name, particularly using series LLC. The harder it is for the lender underwriter to understand the ownership, the less likely they are to approve. For SFR's, if you're looking to shield liability, you can purchase in your name and transfer the asset to the LLC. A good attorney can do this for a nominal fee.

I'm not a lender, but if you would like the names of some in Reno that work with investors, give me a call.  We can discuss your goals and I can refer you on to 2 or more lenders that may be a good fit.

Are you just now starting out? Running a series LLC is good on paper, but in practical terms, it may be cumbersome and expensive.

 Bill,

Yes I would love to connect and ask a few questions. Additionally, yes I wouldn't mind connecting with your associates and ask them questions as well. Thanks for your reply!

[Erik Estrada]

Quote from @Robert Washington:

Biggerpockets family,

Good evening. I'm looking to form a series LLC to purchase property in Reno NV. That being said, will/can banks provide a business loan or will I have to go through the normal process of getting a mortgage?

Thanks for any guidance, I'm new to this and I'm hoping this question makes sense.

 Hey Robert, 

Likely a DSCR loan may work if you are able to put 20-25% down. You would have to carry the loan in your personal name and close title under the LLC.

What's the purchase price? And is it an SFR, 2+ Unit? Happy to connect.

[Jonathan Taylor]

@Robert Washington a few things to note first. Can you clarify what you mean by banks as some folks put chase bank and non QM lenders in the same category as bank. 

Closing in LLCs are not an issue in the 1-4 unit business purpose space. These loans do require warm bodied guarantors but vest in business entites.

If you are mixed use, 5+ MF, commercial, etc this is where you would need to connect with someone who is knowledgable on the state specific rules. NV specifically needs a state licensed, brick and mortar shop to originate loans.  @Bill Schrimpf sounds like your guy who knows the circles in NV. 

Keep us posted on what you find out. 

[Robert Washington]

Quote from @Erik Estrada:

Quote from @Robert Washington:

Biggerpockets family,

Good evening. I'm looking to form a series LLC to purchase property in Reno NV. That being said, will/can banks provide a business loan or will I have to go through the normal process of getting a mortgage?

Thanks for any guidance, I'm new to this and I'm hoping this question makes sense.

 Hey Robert, 

Likely a DSCR loan may work if you are able to put 20-25% down. You would have to carry the loan in your personal name and close title under the LLC.

What's the purchase price? And is it an SFR, 2+ Unit? Happy to connect.

I'm researching multiple houses at the moment but more than likely a SFR.

[Robert Washington]

Quote from @Jonathan Taylor:

@Robert Washington a few things to note first. Can you clarify what you mean by banks as some folks put chase bank and non QM lenders in the same category as bank. 

Closing in LLCs are not an issue in the 1-4 unit business purpose space. These loans do require warm bodied guarantors but vest in business entites.

If you are mixed use, 5+ MF, commercial, etc this is where you would need to connect with someone who is knowledgable on the state specific rules. NV specifically needs a state licensed, brick and mortar shop to originate loans.  @Bill Schrimpf sounds like your guy who knows the circles in NV. 

Keep us posted on what you find out. 

 Jonathan,

Thanks for the reply and I enjoy your insight. By banks I meant normal banks/credit unions such as Chase, BOA, NFCU and etc.