All Forum Posts by: Adam Craig

@Adam Craig Cool house dude! Wherever did him get it?!?  😜 Hope the rehab is coming along well and we can find you another when this is done... 

My guess is that the key was they didn't show on the credit report? 

But if you have signed the commercial loan as a recourse loan, or if the conventional lender is made aware of your properties that are in the LLC that you own more then 25% of, they should be counting them. Where this will be an issue for them is if an audit is done after the fact, that lender could be made to buy back the loans from Fannie Mae, which gets into a big issue for them at that point?

@Adam Craig I understand your pain. However if for no other reason, I would structure your companies and the deals so you can go conventional if you should ever need to. The key is to do them in a corporation or a Sub S versus an LLC. Fannie Mae says that if you own more than 25% of an LLC and have commercial loans on the properties, it doesn't matter and they must be counted in the 10 financed property rule. However if you hold them in a corp. or Sub S corp and they are financed in the name of the company, then you don't have to count them in the 10 financed property rule.

I specifically like to work with investors, I have created a chain of lending that gets you up to 100% purchase / 100% rehab for the hard money when you need it. I will also do the conventional take out loans and when needed move your portfolio on to a commercial lender to clear the slate on the conventional side of things, thereby allowing you to purchase and rehab as many buy and holds or flips as you can handle with virtually no limits.  See the Fannie Mae rules below!!!

Hi Kevin,

See below from the reference guide for FNMA multiple financed properties in MyKey. If they own 25% or more of the LLC or partnership then it would count.

Type of Property Ownership to include in Financed Property Count:

 Joint ownership of residential real estate. (This is considered to be the same as total ownership of an individual property).

Note: Other properties owned or financed jointly by the borrower and co-borrower are only counted once.

 Joint or total ownership of a property that is held in the name of a corporation or S-corporation, even if the borrower is the owner

of the corporation; however, the financing is in the name of the borrower.

 Obligation on a mortgage debt for a residential property (regardless of whether or not the borrower is an owner of the property).

 Ownership of property that is held in the name of a limited liability company (LLC) or partnership where the borrower(s) have

an individual or combined ownership in the LLC or partnership of 25% or more, regardless of the entity (or borrower) that is the

obligor on the mortgage.

 Ownership of a property that is held in the name of an LLC or partnership where the borrower(s) have an individual or combined

ownership in the LLC or partnership of less than 25% and the financing is in the name of the borrower.

 Ownership of a manufactured home and the land on which it is situated that is titled as real property

Type of Property Ownership NOT to include in Financed Property Count:

 Ownership of commercial real estate.

 Ownership of a multifamily property consisting of more than four dwelling units.

 Joint or total ownership of a property that is held in the name of a corporation or S-corporation, even if the borrower is the owner

of the corporation and the financing is in the name of the corporation or S-corporation.

 Ownership in a timeshare.

 Ownership of a vacant (residential) lot.

 Ownership of a property that is held in the name of an LLC or partnership where the borrower(s) have an individual or combined

ownership in the LLC or partnership of less than 25% and the financing is in the name of the LLC or partnership.

 Ownership of a manufactured home on a leasehold estate not titled as real property (chattel lien on the home).

Conventional is always going to be cheaper than commercial, but there are some awesome products out there right now on the commercial side for you to choose from.

Not sure I would go the Lima One, B2R etc... route just yet.  There are other options to consider that have lower rates and fees and like Kevin R from Guild said, clearing the slate may be a good idea and going conventional just to get the better rates.  A little hassle now may be worth more money in your pocket over time.

Just my two cents.

Stephanie

You can clear the slate so to speak of the 10 financed property rule via Fannie Mae if you know what to do next and how to structure it. I have spent some quality time with my underwriter to nail this down because I work with investors. It does involve a commercial loan, but you have to know the specifics of how to hold the properties or you will still end up counting the properties in the conventional 10 financed properties rule. When done correctly, you can do virtually unlimited conventional loans, just not more than 10 at a time before you clear the slate. But you must know the fine details or it wont happen.