Baton Rouge, LA · Member since 2015 · 21 posts · 3 votes
I'm currently looking to buy a 2 bed 1.5 townhouse. It is not on the market yet but I'm positive it will be on the market soon to buy. I am a new business owner and would like to know of a good strategy on how to finance this property through my business/LLC. If not through my business then I would try to finance it on my own. I own my own house and would like to put it up for rent if I was able to buy the townhouse. I would love to get some feedback from anyone who may be able to help guide me through this situation. Thanks in advance!
Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes
10y
As far as financing with a bank, it will depend on what your regular income and credit look like. If you can't demonstrate proof of consistent income this will be a challenge and I suggest you will likely have the best luck with small community banks.
Do you have equity in your existing home you may be able to tap into as collateral? Also if the new home you want is not on the market yet, have you tried to contact the seller about buying it before it gets listed?
Baton Rouge, LA · Member since 2015 · 21 posts · 3 votes
10y
Yes I actually have been contacting small community banks, mortgage companies, and credit unions to see what kind of loans they have to offer in general for this type of situaition. I do also agree that those small banks would be my best bet. I really would like to sign it on my LLC to start creating leverage for my business.
And yes I have done a little direct mail with the seller but I still have no respond.I havent seen him in over a month now. But thank you for your feedback! Lets continue to network together @Brandon Johnson
Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes
10y
Good plan, setup those relationships with the banks ahead of time. Let them know what you are trying to do and what your deal should look like when you land it and you will be ahead of the game. I have developed relationships with numerous local lenders and banking executives in the Baton Rouge area by doing exactly what you are doing. I also did a lot of drop ins. Walk in and ask to speak to the lending officer and tell them what you are looking to do. If they offer the type of loans you are seeking be ready to give them an organized package of your financial information including a personal financial statement, tax returns, pay stubs, etc. Good luck!