My partner and I are finishing up the rehab, within the next month, on our first BRRRR in Chester. We're looking for a good, local, PM company and also a good lender in the area. My partner bought the house cash and it is currently in his name. Will a bank allow me to put the loan in my name? Will we need to form an LLC? Any help will be greatly appreciated.
Good luck - I don’t have answers, but here is a video showing Chester, PA
@Nkuti Ndely Philly is a crazy market place! How has the rehab been going? Are you an out of state investor?
I have friends that are actively investing in Chester, Marcus hook, Brookhaven, Ridley and Eddystone areas.
Its always a good idea to put your business in a LLC. When you refinance it you can put it in a LLC but if you do that you have to pay transfer tax. Anytime it goes into a different name you have to pay the transfer tax. I think it would be worth it in the long run. Good luck with everything.
Regarding putting the loan in your name. Do you think a bank would loan you money on someone else's property? That's actually what your asking about. They would probably let you cosign on a loan with your partner.
Like Eric said, you should be able to cosign the loan but not your name individually. That would be odd. Even if you did an LLC the bank would still want any owner with more than 25% ownership to be a PG on the loan in most cases I have come across.
Check out PFCU for a lender (you have to come up with some way to "qualify for membership" by either living, working, or "doing business" in the city of Philadelphia. I never had to verify this though.)
For PM, check out @Kevin M. or RentWell. Not positive if either of them work in Chester, but I have good experience with both of them in other areas of SE PA.
@Steve Babiak , that video is hilarious. Thanks for sharing.
@Rich O'Neill @Nkuti Ndely I can confirm Rentwell does not manage in Chester. Any other areas is Delco they are my first call, great experience all around from @Sean Watson , I send all my investors to them. On top of that, I very much agree with @Mark Trani , you should definitely for an LLC, yes you will pay the 4.28% transfer tax, but it's well worth the cost considering what it can save you from.
@Dan Powers appreciate the feedback! If I can help in any way don't hesitate to call. And yes we are not currently working in Chester.
@Rich O'Neill thanks for the info. I already reached out to Kevin and I'll check out Rentwell