I am in the process of purchasing a property Sub2 with another investor. Since I am doing this one time transaction with this investor, we put it under contract under his LLC and mine (two LLC’s). The deed will have both LLC’s on it.
I want to know whether this will cause problems with our eventual end buyer’s financing since the deed is in two LLC’s names.
Any help would be great.
One of the things that can happen if you are purchasing with/through a mortgage company is that they want to see you as an individual responsible. Your name must be on the mortgage (personal guarantee). There are companies out their that will do it. You just have to search and ask questions. Make sure that you have time within the contract or have connections to someone that can move quickly for you.
If your company or both LLC’s have less than two years of age, they (Mortgage company) will also consider this a negative from what I have found.
Now if your purchase it with HML or your own $, it should not be a problem.
Bettysue, since they are buying sub2, they (the 2 LLC’s/owners) will not be legally liable for the loan anyway.
No, D-Llama, it should not cause a problem with your end buyer simply because there are currently multiple owners. The most owners that I’ve personally seen on a deed is 25 people.
The biggest problem that you face is to make sure that both you (or your authorized LLC agent) and your partner’s legal signee are available to sign off on the deed transfer when the time comes.
Raj