All Forum Posts by: Charles Wade

So its not hard to refinance with an LLC. Fannie/Freddie even allows it now, but a DSCR loan is quite simple and easy. However, the numbers are really going to determine if that makes sense to do or not. I have a STR that is in an LLC, but the mortgage is still in my personal name. I was able to remove the PMI by requesting it and they did an ARV and removed it. I am a lender and happy to help and have also been through this myself, so feel free to call me and we can talk through and see what makes the most sense.

Jesse, I am interested in how you have a mortgage in your personal name, but it is in a LLC. I didn't think that was possible. Thanks.

Hi Property was put into a Land Trust which is owned by the LLC

Thanks

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Quote from @Charles Wade:

Greetings and thank you in advance for the assistance and advise

I purchased my first STR using a conventional loan and in my name two years ago. The loan was 90% LTV with PMI. The property is now a STR for a year and it has already been transferred into a land trust owned by my LLC.

What I am looking to do now is to refinance the mortgage and remove the PMI as well as have the loan under the LLC and not me personally

1) Is this possible?
2) How?

3) Who?

Thank you to all for the great feedback and advise.

A few asked what my current rate is which it is 7.125% 30 year fixed
I think the property hasn't quite appreciated to 80% LTV as of yet. Close

My main objetive is to refinance the property to remove PMI at a rate that is either the same or below my current rate while under the LLC

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Greetings and thank you in advance for the assistance and advise

3) Who?

1 Vote

Quote from @Andrew Simms:

Quote from @Charles Wade:

Quote from @Andrew Simms:

@Charles Wade I think your gross rent is correct, but the way you wrote it makes people think you are already including vacancy... $150 per night for 30 nights is $4500 less vacancy (40%)... you've got $2700/mo to work with.

I plugged this deal in my calculator and made some assumptions on expenses (property taxes, insurance, maintenance/repairs, supplies, utilities - don't forget water if not on well, gas, electric, cable, trash, lawn care, and if you have an HOA)

Even at 20% down, this deal doesn't seem to make sense to me.

Thank you Andrew. This is exactly the help I needed. This being my first investment, I don't want to end upside down on the deal. Another question, someone suggested that I should not be running numbers on a 10% deal. Why shouldn't I? If I can get into a property with little cash out of pocket and the numbers make sense wouldn't that be the right thing to do?

You can do 10% if you do a second home loan. But if you're intent is solely for an investment and you do not intend to use it at all, your mortgage broker won't like it and by not like it, that is probably considered mortgage fraud. So that is why you shouldn't base it on a 90% LTV.

Oh yes I knew that. I do intend to use it as a part-time primary and my broker is aware of my intentions as well.

0 Votes

Atlanta, Georgia

Quote from @Andrew Simms:

Even at 20% down, this deal doesn't seem to make sense to me.

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Atlanta, Georgia

Quote from @Dave Skow:

@Charles Wade 1) you will have a challenge finding a loan at 90% ltv for a STR investmenet 2) what interest rate are you using ? 3) get formally pre approved with a lender if you arent already

Thank you for the feedback. I am already approved with 90% financing

1 Vote

Atlanta, Georgia

Quote from @Leslie Anne Morris:

I wrote this, it should help!

https://www.biggerpockets.com/...

Thank you, this is very helpful!!

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Atlanta, Georgia

Quote from @Michael Baum:

Ok @Charles Wade, what does the appraiser say? Not Zillow.

Greetings

It has not been appraised as of yet. I am not under contract on this property, just considering it and running the numbers ahead of my decision.

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Atlanta, Georgia

Quote from @Michael Baum:

Hey @Charles Wade. Just a quick question. You said the asking price is well above market? What is the market value of the house.

A STR is just a house. It is worth what the comps say. Past performance is no guarantee of future success.

Also, what is vacancy costing you?

Zestimate is closer to $370,000. I know that is not always accurate but for comparable sold homes in that area, the asking price is much higher

0 Votes

Atlanta, Georgia

Quote from @Heidi McBroom:

Hi Charles. Wondering why you are including vacancy expense when your gross rent is calculated off of an occupancy that already includes vacancy?

Also, make sure your operating expense includes housecleaning for each booking, maintenance, utilities, and if you are not local, someone who can act as a guest contact or at least emergency contact.

Good luck!!

Thank you for the feedback. I will make the adjust to remove the vacancy calculation but it is included in the DealCheck template.

1 Vote

Atlanta, Georgia

All Forum Posts by: Charles Wade

Charles Wade has started 2 posts and replied 14 times.

Post: Guidance on refinancing from personal mortgage to an LLC

Post: Guidance on refinancing from personal mortgage to an LLC

Post: Guidance on refinancing from personal mortgage to an LLC

Post: First STR Purchase - Existing STR in Blue Ridge, GA

Post: First STR Purchase - Existing STR in Blue Ridge, GA

Post: First STR Purchase - Existing STR in Blue Ridge, GA

Post: First STR Purchase - Existing STR in Blue Ridge, GA

Post: First STR Purchase - Existing STR in Blue Ridge, GA

Post: First STR Purchase - Existing STR in Blue Ridge, GA

Post: First STR Purchase - Existing STR in Blue Ridge, GA