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Updated almost 11 years ago on .

Account Closed
  • Investor
  • Washington, DC
4
Votes |
17
Posts

Creative financing question

Account Closed
  • Investor
  • Washington, DC
Posted

I bought a townhouse in 2011 and converted it into a 3 unit multifamily using personal credit. Based on quick comparison with similar properties in my neighborhood, the property is now worth about 850K, and I owe 590K on it. I wanna get another property but my personal credit is all tapped out. As a result, I am thinking of 'selling' the property to my LLC, so that I can free up some personal debt and then get another property to flip. The LLC makes about 105K/year (I have 3 years worth of tax returns, and leases to support this) from rents of the four units under my name. I charge the LLC $1/year for leasing the properties from me. Is selling the property to my LLC the best way to get some financing for additional properties? I would essentially converting personal date to commercial date and then using the freed up personal date to get another property. What kind of documents do I need to bring to a portfolio lender for them to consider this deal? I was going to bring (1) 3 years of tax returns (2) valuation of the property (3) some rehab before and after.