Real Estate Broker · Seabrook, TX · Member since 2014 · 31 posts · 25 votes
We started savings accounts for our boys pretty early on and our 13 year old has a decent amount saved but it's making pennies.. I wanted to help/show him a better way of investing; Real Estate. Since he's a minor, we contacted my attorney and set up an LLC, 50/50 partners. I thought BRRR investing would be his best avenue so we started the LLC with only $5k each invested. Talked with a local bank about obtaining a LOC, approved, found house, purchased, renovations will be completed this week and now we are looking at finance options, 15-30 years in the LLC name. I believe the bank that provided our LOC will approve a mortgage loan for us but I want to look into all options. Would love recommendations. TIA!!
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
6y
Wow, this is awesome @Krystyna Fennelly! I'd love to do this with my son when he's older. You can definitely find a lender to lend to the LLC. Your interest rate will be higher but there are portfolio lenders like LimaOne, FlipSimpli and many others that lend to LLC's for 30 amortizations. Check with 5-10 "lenders" (essentially brokers) and see what you come up with.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
6y
Wow, this is awesome @Krystyna Fennelly! I'd love to do this with my son when he's older. You can definitely find a lender to lend to the LLC. Your interest rate will be higher but there are portfolio lenders like LimaOne, FlipSimpli and many others that lend to LLC's for 30 amortizations. Check with 5-10 "lenders" (essentially brokers) and see what you come up with.
Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
6y
There are many different investors that offer loans to the LLC with a personal guarantee. Some investors don't require a personal guarantee. My best advice is to work with a company that has many of these investors and does a number of these loans regularly. A company that does many of these loans, will automatically know the best placement of the loan for the best terms.
Lender · Boulder, CO · Member since 2019 · 44 posts · 35 votes
6y
@Krystyna Fennelly
The bank will likely require the loan to be with an individual vs LLC. You have access to non bank 30yr fixed options held in the LLC at 5-6% if your bank does not work out.