@Tarik Nabi this definitely sounds like you are not using an "investor friendly" bank. Have you posted to the Virginia forum for some good recommendations on banks that offer Lines of Credit on investment properties? (I'm assuming the properties are in Virginia). Just transferring the ownership of the home to an LLC won't change who is responsible for the mortgage. In order to change the liability of the mortgage you would have to refinance...which is another cost. So I would certainly look for a different bank. Just curious, do you have 50% equity in these rental properties?
Who owns them has nothing to do with your loan count with the lender.
You could transfer them into an LLC and STILL be limited in your ability to get a loan because the loan is still in your name.
The only way to get rid of the loan would be to pay it off, consolidate loans to 1 property to lower your limit, or get a commercial loan in the business' name. Otherwise, you should be able to go up to 10 loans through conventional methods.
Thanks Andrew, the draw with this bank is the 75% LTV which Is the best I could get.
The properties are in both Va and Md, and in this particular one, my equity is about 45%. Does that change anything?
I would appreciate any bank/lender recommendations.
Thanks for the input, and if you have any lender recommendations I’m all ears :)
@Tarik Nabi receiving a Line of Credit at 75% is pretty good on an investment property. To me that sounds a lot better than a lot of banks that I have spoke with. My suggestion would still be to post in the Virginia or Maryland forums to see if some local people might have other recommendations but 75% sounds really good to me. Thanks!
Join the Largest Real Estate Investing Community
Basic membership is free, forever.