Newbie Creative Financing Question
My wife and I are new ro REI and are looking for some answers when it comes to financing deals. Like most folks, we will need to obtain a mortgage of some type to purchase properties that we are interested in flipping (provided there is no option for owner financing, etc). Is it possible to do this for more than a couple of properties simultaneously? Since we have a mortgage on our home, and soon will have one on a house that we intend to flip, there is only so much that our income to debt ratio will take. How can I then get financing on other potential deals that arise? We learned at a recent seminar that if we were apply for financing in the name of some other legal entity, an LLC perhaps, that things change a bit in term of credit reports and how lenders look at the profitability of deals rather than the credit of the people involved. Is this in fact true, or just something that the gurus say to get you to buy their program? Any info/resources on creative financing greatly appreciated.
To get financing in the name of an LLC you need to have a financial record for the LLC and some history, then, you would still probably only get 80% LTV
Being a broker myself, I can tell you that the chances of a lender letting you put a loan in your LLC's name is slim to none, believe me I have tried everything in the book to make it happen. Even with a personal guaranteeor they don't want to do it. Usually what my customers do is put the title and loan in their name. And perhaps like a year later, just transfer title in the name of their LLC. He is right, you would probably only get 80% AT BEST. That is probably something they say to get you to buy their program... isn't that what most seminars are anyways?? Fancy, long infomercials??