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Can I get back to being qualified for conventional loans?
I started out REI on the wrong foot by getting blanket loans instead of conventional to start with. I don't regret it, but it has hindered me from taking advantage of these historically low interest rates. I have a few loans covering over 10 properties. The loans and properties are in a single-member LLC in my name. Because it is a single-member LLC, I have to report my properties on Schedule E on taxes. Underwriters do not like this.
A lender I spoke to mentioned that if it is a multi-member LLC, I would only be doing a Form K-1 on my taxes for the LLC, and that the properties would no longer be under my personal name, therefore making me eligible for conventional loans once again.
Is this true? I have spoken to a couple of different tax people and lawyers but no one can give me a straight answer. I need to know before I plow money into reforming my LLC and amending my taxes.
Can anyone confirm any of this? I am looking for someone to consult with on this issue. Even better if you are a CPA who can help me with this and my taxes.