Harpers Ferry, WV · Member since 2016 · 13 posts · 3 votes
I have a couple mortgages under an LLC that are commercial loans. They are adjustable rates and balloon after 10 years. This isn't an ideal situation for me even at the deal I acquired the properties for. I have heard some horror stories of there being no money available to refinance at the end of the term. So my question, is there a way to get a 30 year fixed mortgage under the protection of an LLC?
Could you purchase the property in your name and transfer into the LLC? I know that this can trigger the "due on sale" clause with the lender but I've heard there are ways around this using a land trust?
I use commercial loans all of the time. Every loan and different banks are at 20 or 25 year amortization. Some balloon at 5, 10 and 20. If you want 30 year you will need to put it in your name. You may need to house hack.
What is the point of purchasing property through an LLC when you could put it in your name at a longer term and lower rate? And then transfer it into an LLC after a few months of payment? What am I missing? Is the only reason for buying with an LLC because the property has more than four units?
You could only have so many mortgages under your name before the Debt to income ratio on paper doesn’t work in your favor. Also some lenders have a rule on the amount of mortgages an individual can have. LLc loans are great because they don’t show up on your credit. If anyone can post some llc long term lenders please do so thanks
I know hard money lenders like lendinghome and lendingone will actually do 30 year fixed rates and ARMs. Right now their interest rates are around 6 to 8% which is not bad when you compare it to mortgages a few years ago. Their closing costs are also reasonable.
Late to the party, but you can definitely get a 30 yr fixed mortgage with a private lender with the borrowing entity as an LLC. Most rates are mid 5's so you're paying a premium. Most banks are still at a 5 or 10 fix over 20/25 years.
Please reach out to me, I'm interested in the option you are offering. ~ Sincerely, Stephen Rager
@Philip L. Bigger Pockets has some great state forums. My suggestion would be to post in the Michigan state forum. There's usually some good locals that monitor that forum and using other locals who have experience with lenders is the best place to start. They have done all the hard work for us. Feel free to post there. Thanks!