1. Structure of LLC. For instance, is the LLC funded via a self-directed IRA?---------
2. The purpose for the purpose now comes in to play. Will it be investment real estate or owner occupied, family occupied, ect.----------
3. Your tax structure. What may be legal may prove to be costly.----------
4. Future intent, such as buying addition real estate, and the number of purchases.---------
5. Future intent, such as is your intent to HOLD the property to generate cash, will you resell to other investors?-------------
6. Future intent. Will you be selling real estate to owner occupants?----------
7. Will you offer owner financing?-------------
8. How may transactions do you anticipate annually?----------With a doubt, your responses to these question will make your choices and options highly complex. The very small peek you've allowed us regarding your situation is completely inadequate to judge if you are getting proper guidance. What we can be assured of it the folks standing near you know A LOT MORE about your situation than the 83 words you shared with us.
Now that makes sense. It's not that we can't own it...it's that a mortgage may be difficult to obtain.
The bank rep simply made it sound as though our LLC couldn't own the property so we should decide which name to put it in and move forward.
I think we'll be shopping for mortgage brokers before making any other move.
Just to ask....anything to look for or stay away from with mortgage people?
We have 2 LLCs. The first is the "real" company that's involved in manufacturing and internet sales. The second is one we established to buy the building we formerly rented. The first LLC has plenty of assets. That's why we are looking to purchase real estate as a long term hedge for the future. We could just buy the property with a check....but were advised that a mortgage would be a better idea.
The last time I sold a property to a LLC, the required down payment and the interest rate were higher. However, we did not have any problems completing the transaction.
Corporations can and often do own real estate.