Do banks provide home equity loans for properties owned as an LLC?
Some banks will as long as your personal credit is great and you personal stand good for the loan.
Do you know what banks will originate a loan that you plan to put into an LLC upon close? And what terms their offering? This will be a full doc loan with 20% down, credit score of 620/640 depending on the principal. There will also be additional collateral/ins placed into another account that will mature, and payoff any loan we do to protect against default in the future. It’s there to protect our interest in the LLC and property. Probably FL properties to begin with.
I ask here in reiclub cause there are always good helpful members who know what their doing here! Thanks Reiclub members for the endless hours you spend helping and answering those that don’t know everything! Then again I think in this biz even if you think you could there’s always something else to find out!
Thanks,
Kathy
Hey Kathy,
Where in Florida are you? Me and a friend are thinking of buy distressed properties and rehabbing them for rental income. We also have the same questions about LLCs and getting a refi after the rehab. We are in Central Florida. Just starting out and need all the guidance we can get. Perhaps we can learn from eachother as we get going!
Thanks
Ian
Most banks want originate a loan that you plan to put in a LLC because banks been burnt before by shady LLC company’s. There is still a chance if you have a relationship with a bank they might do it but they be wanting you to stand good for the loan.
[color=navy]Oops not sure how the hell I did that one! Sorry Real estate seller I didn’t mean to start a whole post somewhere else in an attempt to respond to this thread.
Ian,
I’m not from Florida. I’m in St. Louis. Asking questions is the best way to get answers. To me no ?? is stupid! I was always taught if you don’t ask you won’t know. We have some of the best investors here that mentor us with good answers. Florida was chosen as the place because of the opportunity for buying distressed properties. However, be sure to do your due diligence prior to purchase many people have put this industry at a disadvantage by not doing good due diligence.
Besides a purchase and rehab, the profit potential can be good but be sure of your strategies. There is money down required, rehab money, ins, taxes, and holding money needed till rented or sold. Besides the finding a good property research the title prior ordering your title search.
You may find that awesome deal has a real messy title with no way to cure the defects of fraud involved in the title. Unless you have a good inexpensive atty in your pocket to assist you. However even then it may be better to leave that opportunity to someone else more experienced.
Good luck in your endeavors!
Kathy
Kathy,
The best policy if you don’t know ask. That what title companies are for to run title search before you buy. Always work with title companies that will do assignments, double closing, work very quick. And always pay a good title company a little more to show them how much you love them and when you say jump they say how high.