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Author Topic: Bank Loans to buy Real Estate?  (Read 7636 times)

Offline Stanfield

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Re: Bank Loans to buy Real Estate?
« Reply #15 on: July 15, 2009, 10:14:04 am »
I do the same with LLC and Banks.  Pretty simple.  Filing fee here is $88 for LLC.  I put 3 houses per LLC.  My level of risk.

As for keeping is all seperate with checking and accounting it is simple.  I just have a 1.5" binder for each LLC with all info in it.  Deeds, leases, mortgages, financial statements, and checking.  Also, keep all bills in it as well.

I also use quickbooks on line with the free account that lets you track it all.  20 minutes of bookwork once or twice a month per LLC.

Safe and simple. 

I have also thought that at some point it might make sense to sell the LLC versus each property.  Don't know about that part yet.  Any suggestions?
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Hooch

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Re: Bank Loans to buy Real Estate?
« Reply #16 on: July 15, 2009, 01:05:34 pm »
I have also thought that at some point it might make sense to sell the LLC versus each property.  Don't know about that part yet.  Any suggestions?

I never thought about that... Interesting Idea!


Offline BLL

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Re: Bank Loans to buy Real Estate?
« Reply #17 on: July 15, 2009, 01:12:35 pm »
I have also thought that at some point it might make sense to sell the LLC versus each property.  Don't know about that part yet.  Any suggestions?
Selling an LLC is like selling a partnership, which can get complicated.

Offline canuck88

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Re: Bank Loans to buy Real Estate?
« Reply #18 on: July 15, 2009, 04:22:00 pm »
Great info guys very much appreciated. I have multiple LLC's one which I have a property in now that is fixed. I bought with hard money. I want to sell it to another of my LLC's but not have it on my credit. So the personal gurantee does not show on my credit correct? Also if it is a SFH am I still looking for a comercial loan from a local bank? What about Credit Unions can they do the same things or since they are member managed will it be harder?
Sorry one last question would it be easier to have it rented before I buy in LLC or does that matter to them? TY again in advance

Offline justin0419

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Re: Bank Loans to buy Real Estate?
« Reply #19 on: July 15, 2009, 08:20:23 pm »
Our personal guarantees do not show on our credit.  If you're buying in the LLC name, you'll be looking for a commercial loan even if it's on a SFH.  I haven't seen a credit union willing to do loans like this - at least not in my area.  Look for local banks.  If you can show something is already producing income, I'm sure that would look favorable for your case, but we've bought some with tenants already in place and others were vacant.  As long as the numbers make sense, that's the main thing.  You should know approx. what the house would rent for and use that in determining how much you can pay (and borrow) for the property.
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Offline JakeRodgers

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Re: Bank Loans to buy Real Estate?
« Reply #20 on: July 15, 2009, 10:06:32 pm »
What will show up on your credit report if you PG the loan would be a hard inquiry, since the lender will probably pull your personal credit reports. Just an FYI.

Offline Stanfield

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Re: Bank Loans to buy Real Estate?
« Reply #21 on: July 19, 2009, 02:01:09 pm »
Hey everyone.  Was at local REI club meeting.  Mike Watson was there and he just briefly touched on the LLC buying. Mike owns propety in 9 states, $50 million real estate, etc. Smart guy.

Said that he has been doing the LLC buying more lately.

Reasons:
Can buy LLC's line of credit from another investor.  Instant equity on another property to leverage.  Avoids certain taxes. 

Again he just touched on it.  Selling his course! 

But, I know everyone in the room was like you can sell an LLC.  Duh... how do you think businesses trade hands any way!

Also, met a guy doing self directed IRA's for his houses.

Think I love about real estate investing is you meet some very creative people!

Lastly, Mike has been able to go to banks and buy houses with no money down, interest rates at 3-4%, and deferred payments.  He has used the FDIC website to find banks close to going under.  Then leverages that knowledge with his 9 steps for the bank to realize they are beter giving him a great loan versus closing the door.

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