Be A Business Or Be An Individual?
I'm starting to look around for a multi-unit rental, 4 units or less. I have a private lender that will get me through the purchase, but afterwards I have to go refinance, and that is where my question comes up...
I've been told by a few mortgage brokers that owning 5 or more rental properties basicly excludes you from all future mortgage financing, because no lender wants to take that kind of risk. I can understand this, and so I started looking at using a company instead.
I do have an LLC formed that has been in existance for 2 years, but since I haven't done anything with it, has no reports of income. How difficult will/can it be to refinance a 4 or less unit rental property owned by such a business? I'm kind of stumped on how to proceed...
A four or less unit will be exactly the same underwriting guidelines whether you own it personally or in a business. Either way you will be expected to sign the mortgage personally.
Find a new mortgage broker. Somehow Donald Trump manages to get financing even though he owns more than 5 rental units.
I agree with commercial king, you want a mortgage broker that would have advised you to loop up al the mortgages into one mortgage through the LLC with you as a personal signatory. This way it shows that you have the ptoential to do a higher amount loan, and also shows only one loan outstanding. I would start putting that LLC to good use.
Good Luck,
Kyle
Hmmm, does anyone have any recommendations for a better broker then?
Thanks for the advice. I had asked my broker before about "blanket" mortgages, but he said I should forget it on multi-units... =)