We are looking to start investing in the US and have been investigating the recommendations of using an LLC. For most Aussies, getting finance in the US is very difficult. However, I am a US citizen with a very good credit rating. I am interested to find out if anyone has had any experience with getting finance whilst the property would be titled in the name of the LLC.
Welcome to our forum AR.
Feel free to send me a personal email below and i would be happy to answer your question privately.
Kind regards,
Federaly Regulated lenders ( IE not private lenders or seller carry back lenders) will not lend to an LLC. Commercial banks that hold their paper and do not sell in the secondary market will lend to an LLC with a Personal Guarantee.
We are working on a Fund with our Commercial bank for the purpose of lending to Out of country. My commercial bank will not do it directly however they are entertaining providing us a wharehouse line that we can use for those purposes. From the banks stand point they have dual sources of repayment that being our company that has Personaly Guaranteed the wharehouse line and the Borrower even with all of that said, Myself as the lender will be very conservative as we would have no recourse on a out of country borrower.
It would all come down to our underwriting process. Those that wish to borrower and have secured properties where the loans are being made on ARV and the Turn Key operater is taking 20 to 50% profit on the deals which is common in the states right now. These deals will be closely watched and in practice because of the profit being made from the turn key company the values really can't be substantiated as they create their own comps. So LTV's will be very conservative as a result.
Then there are the NON owner Occ rules which have changed dramatically since 08. by and large unless you have substantial cash reserves you will be limited to 4 mortgages on your credit report. Some lenders will go 10 an the rules say there can be 10 but thats for only the very best borrower and one that again has significant cash assets.
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