Hello Bigger Pockets community,

I am Jacques Ridore, I usually go by Jay.  I am a new transplant to the real estate investor field. A little bit about me is that I am an active duty military member of just over 15 years. I have a BA in Business Admin, and an AAS in Construction Technology. My goals are to have a better retirement life through investment properties, more specifically small multi-unit properties.  

I started an LLC late last year and just recently placed an offer on 2 multi unit properties that got excepted. I took the route of both me and my wife getting separate a VA loans and purchasing properties that are close to each other, since we have to live in them for a year. I am excited and interested in growing my portfolio in the coming years but I am not sure of how to go about financing since we would have to supply a significantly higher down payment if we were to go traditional loan for an investment property.

I have so many questions as I embark on this journey. Can/should I transfer the title of the property to my LLC since I have a tax ID? If I transfer the title, will I qualify for another VA loan. Is there any way around having to live in the unit for a year?

Thank you in advance if you can help me with any of my questions.

@Jacques Ridore

Welcome to the BiggerPockets community!
Best of luck with your Real Estate Investing Career.
Glad to have you with us.

@Jacques Ridore welcome to the BP community and congrats on taking action. As another military service member, I’d be more than happy to help with any questions you may have.

Originally posted by @Stuart Grazier :

@Jacques Ridore welcome to the BP community and congrats on taking action. As another military service member, I’d be more than happy to help with any questions you may have.

 Thank you Stuart,

If I am able to transfer the new loan to my LLC, can I apply for another VA loan as soon s next year ?

@Jacques Ridore Great questions and welcome to BiggerPockets!  There are so many options that you have I would probably need more information to give a reasonable path.  

A few items to note: This isn't legal advice, just my opinion as a real estate investor. I would be cautious about transferring title into an LLC and explore the due on sale clause in your contract first.

I can definitely connect you with resources and help with questions. The best articles I can think of that may help you along your journey that I have here on BiggerPockets are: 

https://www.biggerpockets.com/blog/the-traditional...

https://www.biggerpockets.com/blog/llc-lending-problem/

I work with a lot of investors regarding these entities. It helps with starting investors as they can streamline a lot of their compliance, taxes and banking; however, for bigger investors who are a bit down the road it can also scale smoothly. If you have any specific questions I can help with shoot them my way. 

@Jacques Ridore I'll preface with I'm not an attorney, cpa, or mortgage broker so my answer may not be complete and will look to others who have more knowledge on the specifics. Once you refinance out of a VA loan into a conventional loan, you are able to use your VA loan benefits again. There is a certain number of VA loans that you can do, and there is a CAP at how much you can have at one time, but I don't know what those numbers are. With respect to transferring to an LLC: you will risk the due on sale clause in most conventional mortgages if you transfer the deed to an LLC. And, most Fannie Mae / Freddy Mac lenders won't do a loan when title is held in an LLC; it has to be held personally. If you transfer the title to an LLC, you'll more than likely have to use a portfolio lender or commercial lender, which may be a higher interest rate. So, there isn't one easy answer to this one unfortunately. I'd say talk to a real estate attorney first, and then go from there.

@Jacques Ridore

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Wishing you the best!

Thank you Scott for the advice ! 

Originally posted by @Scott Smith :

@Jacques Ridore Great questions and welcome to BiggerPockets!  There are so many options that you have I would probably need more information to give a reasonable path.  

A few items to note: This isn't legal advice, just my opinion as a real estate investor. I would be cautious about transferring title into an LLC and explore the due on sale clause in your contract first.

I can definitely connect you with resources and help with questions. The best articles I can think of that may help you along your journey that I have here on BiggerPockets are: 

https://www.biggerpockets.com/blog/the-traditional...

https://www.biggerpockets.com/blog/llc-lending-problem/

I work with a lot of investors regarding these entities. It helps with starting investors as they can streamline a lot of their compliance, taxes and banking; however, for bigger investors who are a bit down the road it can also scale smoothly. If you have any specific questions I can help with shoot them my way. 

@Jacques Ridore it appears I'm late to the party and your question(s) have already been answered. Welcome to the military real estate investor community! There are more of us than you know, and we are always willing to help a fellow veteran out!