Buying a house as an investor and keeping the property to rent
I am looking to start investing with a partner and we wanted to flip houses and purchase property to keep and rent out for monthly cash flow purposes. My concern is that we were looking to set up an LLC for the business (which would work fine for flipping houses) but would not work if you financed the property long term through a bank since banks will not allow a property to be owned by an LLC. I understand we can get financing through a hard money lender or from our own funds for the initial purchase and renovation, but how do you not tie up your money if you are looking to hold the property long term? Thanks in advance.
Thanks for visiting our site and posting on the forum. It sounds like you’re off to a great start and have been doing your research. Whether a lender will allow the property to be in an LLCs name or not is up to the lender. Some lenders are fine with it and others aren’t . If you take out a hard money loan, at the end of the loan you would either need to pay it off or refinance into a permanent mortgage. Check out Visio Lending. They offer long term rental property loans to investors. I’ve also included a link to our real estate holding company article which I think you will find helpful.
All the best,