Using an LLC to buy rental property
|Posted by: KCK Aug 1 2004, 04:41 PM
|I have found a small duplex that I would like to purchase through an LLC. This will be the first property that the LLC has purchased as it’s own entity. The duplex has been fully rented for over 2 years with the same tenants and has a net operating income of almost 100 dollars per month.
What is the best way to finance this duplex through the LLC? With as little money as possible down of course!
|Posted by: loanuniverse Aug 1 2004, 10:46 PM
|” What is the best way to finance this duplex through the LLC? With as little money as possible down of course!
The best way would be to get the current owner to do some seller financing at a rate competitive with that of a mainstream lender.
The next best would be to get some kind of investment property loan for which properties under 4 units qualify. Frankly, these types of loans are managed by the residential part of a bank, and I am not to familiar with their structure.
Next you could go with a commercial loan, which would require a maximum loan-to-value of 80% meaning you need to come up with 20% equity, seller or junior lender financing.