Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
If you want the mortgage in the company's name, the company will have to have at least one year of tax returns showing income that can support the size of the loan. Otherwise you will have to put it under your names. So the short answer is no. You can't just form an LLc and get a loan through the LLC with no documentation of the LLC's income.
If you want the mortgage in the company's name, the company will have to have at least one year of tax returns showing income that can support the size of the loan. Otherwise you will have to put it under your names. So the short answer is no. You can't just form an LLc and get a loan through the LLC with no documentation of the LLC's income.
Even though I personally guarantee it? still I won't be able to get a loan for business?
If it's personally guaranteed by you than of course you can get the loan(provided your income is sufficient to qualify you for the loan) but know that you are personally liable for the loan, not the business entity.
If it's personally guaranteed by you than of course you can get the loan(provided your income is sufficient to qualify you for the loan) but know that you are personally liable for the loan, not the business entity.
Humm! in that case it's a better idea to do it on our name rather than creating a company.
I think I just need to do a legal contract with my friend about the property and investments. Less entity headache to deal with.
I also found that insurance companies are not too friendly with entity investing in a property. It's easy route for me to just do it on personal income.
Humm! in that case it's a better idea to do it on our name rather than creating a company.
.
Yup. Banks tend to be suspect of corporations that are formed for no reason other than to protect the interests of the owners, as they lose their ability to get their money back if the company folds.
Even doing the loan personally, if you don't have a track record as a landlord, many banks won't give you a loan if you're going to rely on the income from the rental to pay for the mortgage. You basically have to qualify for the amount of your current mortgage plus the rental property mortgage just on your current salary.
Yup. Banks tend to be suspect of corporations that are formed for no reason other than to protect the interests of the owners, as they lose their ability to get their money back if the company folds.
Even doing the loan personally, if you don't have a track record as a landlord, many banks won't give you a loan if you're going to rely on the income from the rental to pay for the mortgage. You basically have to qualify for the amount of your current mortgage plus the rental property mortgage just on your current salary.
The loan on my personal income I am not worried about. I have down payment plus I will be investing with my friend we both have strong income and even without rental income we can pay full mortgage with our current mortgage.
You can purchase the property on your name as investment and form a company to manage the rental property.
That's just too much work LOL!!
I would prefer to keep it very minimal work on my part, I think if I purchase on my name it will help me on my annual tax return as I can do a lot of write off on that.
Why would you want to form a company just for 1 property?
Too much work.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
