Owner-occupied offer stronger than LLC?

6 Replies

I am looking to BRRRR a fourplex in Saint Louis, MO. I was told that it'll be competitive to acquire the subject property because it's in hot area and bank-owned. Therefore, I should offer on the property as an owner-occupant rather than as an investor with an LLC. I have no problem at all house-hacking and living in the property for a year. The issue is that it's harder to find a hard money lender or short term lender that'll lend for the purchase and rehab in my name/knowing that I'll be occupying it when it's refinanced out on a 15-30 year fixed. Any advice on this?

Hmm, @Michael Eaton-Byrd , I don't see why owner-occupant would be a stronger offer. What was the reasoning your agent gave you? One way to potentially get around this is to submit your offer under the name "Michael Eaton-Byrd or designated entity," which gives you flexibility to take ownership in a LLC, if you choose.

If you're working with a HML, your offer should be as good as cash. That's definitely strong.

As @Kyle Eckert said that's a real possibility and we've run into it multiple times. Never understood it, but it's out there. However, once that time period is over no idea why they would favor an owner-occupant offer over an investor as I typically feel like investors are more likely to close without hassle.