How do you find banks to give LLC loans for investment properties?
I would like to find some institutions that provide mortgage loans to an LLC but haven’t been able to find any that don’t require 40% down payments or something ridiculous like that. Is this the norm?
Tags: Banks, Find, Give, Investment, Loans, properties
Banks and lenders are stupid. Working with them will be the most time consuming part of your investment and property management biz.
Why they require so much, who knows. But know that having an LLC does not help (or hurt) you at all. They still look at YOUR taxes and YOUR credit score.
Try cloans.com for a “lending tree” type list of commercial lender bids. Or if its 4 units or LESS than it’s not classified as commercial and you can go to a lendingtree.com type site.
Stick with it. Contact enough lenders and you’ll find some that are good to work with.
Hence the evolution of the mortgage broker …
Speak to as many as possible, they often deal with unique lenders, both locally and online to explain your options or tactics to overcome your hurdles.
They only way you will find a lender that does not require at least 20% down on an investment property is if you can find a private or hard money investor. The problem right now is the guidelines are being dictated by the secondary market (the people who buy the loans) and the PMI companies.
PS. Do not waste your time going to Lending Tree…