All Forum Posts by: Account Closed

Thanks @Joe Fairlessand @Alexander Felice. I appreciate you taking the time! I am curious, how do other investors protect themselves if they can't refinance as LLCs? I think its way to risky to have, say 10, properties under one's name without the protection of the LLC.

Thanks @Mindy Jensen.  I will check out the blogs, and I have been listening to the podcasts. They are pretty awesome!

thanks @Rob Beland

I would be super grateful for your thoughts, advice I essentially need to refinance and get a home equity loan, but I am wondering about the best way to go about doing it:

Situation: I have a 3-unit property with a monthly PMI (600) & equity of around 230K (I owe about 600K, and similar properties are selling for 830K). I have an LLC which I use to conduct business related to the property, and the property title and loan are currently in my name. I intend to use the Home Equity Loan to get another property.

Questions:

1) Is it better to re-finance the property and keep it under my name or refinance it and transfer the loan to the LLC. If its under my name the home equity loan will be under my name, but if I refinance as an LLC, then the home equity loan (if possible will be under the LLC).

2) Can I still claim the property as my primary residence if I refi under the LLC? I live in one the three units

@Robert Sepulveda

thanks for your answer, quite useful for me as well, as I am starting a path into commercial financing

I bought a townhouse in 2011 and converted it into a 3 unit multifamily using personal credit. Based on quick comparison with similar properties in my neighborhood, the property is now worth about 850K, and I owe 590K on it. I wanna get another property but my personal credit is all tapped out. As a result, I am thinking of 'selling' the property to my LLC, so that I can free up some personal debt and then get another property to flip. The LLC makes about 105K/year (I have 3 years worth of tax returns, and leases to support this) from rents of the four units under my name. I charge the LLC $1/year for leasing the properties from me. Is selling the property to my LLC the best way to get some financing for additional properties? I would essentially converting personal date to commercial date and then using the freed up personal date to get another property. What kind of documents do I need to bring to a portfolio lender for them to consider this deal? I was going to bring (1) 3 years of tax returns (2) valuation of the property (3) some rehab before and after.