Me an a partner are planning to set up an LLC together to buy rental properties through. What is the best way to get mortgages for these properties if we are putting a sizable down payment of 25-35% down for each? Will standard banks and mortgage companies loan to an LLC for investment properties? and even further a new LLC? Will using an LLC that already exists and has been in business for a few years make any difference?
I've talked to some companies such as Lending One and Lima One about refinancing a BRRRR, but am wondering if these are still the best to go through if we're buying properties off the MLS and putting money down in a more standard fashion. Trying to get the best interest rate I can.
Any advice suggestions or guidance is very appreciated.
@Mitchell Senkowicz , while you establish your business, the banks will most likely require you and your partner to be guarantors on the loan. The property title will be in the LLC's name, but you'll be on the mortgage.
Have you talked to your local banks and credit unions, they're usually the best way to go.
Unless the LLC has assets already, most lenders will require a personal guarantee, as @Jaysen Medhurst said.
Call and have a few conversations with lenders -- And don't take any one lender's word as gospel. Most will tell you something is impossible if it's something that they don't offer. And some banks will specialize in investments while others only do them if they have to. Some branch managers will speak the language and others will have only a vague understanding of why someone would invest in RE.
Ok thank you guys. I talked with some banks a couple months back but didn't get very far, seems I just need to keep talking to more. I haven't found too many local banks around me (at least ones that haven't been boughten up by a big one recently) but I'll try to hone in on some credit unions and see what they say.