Anyone succeeded in getting a mortgage as an LLC owning rental property?

[Foggier]

Hi all,

So, I am currently at $2500/mo net income (after prop taxes, water, insurance, mortgages) from owning two properties with about 6 months history. Now, I've read elsewhere on here that it is possible to get a mortgage for rental property via cash flow only - no W2 or earned income required and that some places even allowed 5% of liquid net worth to be considered in the cash flow calculation.

However, I wanted to know if anyone has managed to do one better - to put the props in an LLC and then get mortgages for the LLC to buy rental properties that need not be cosigned by an LLC manager with a W2 and normal full-time income. Ideally, I'd like to get to the point where my LLC can get mortgages such that my liability in case of a bad purchase is limited to the LLC's assets and not mine.

Anyone managed to get mortgages for their rental property LLC backed by the LLC's cash flow/liquid assets and w/o needing to co-sign the loan? How did you do it and what kind of history for the LLC was needed?

[GrayGhost]

We did. Our personal assets are not touchable in case of foreclosures, only the LLC's. The reason is that my parents have a pretty high net worth with plenty of liquid assets, plus we got a reference from our accountant. It really wasn't that difficult or unorthodox to do. We just had to get deals on the properties and fund the LLC. As I recall, the bank didn't really ask much about cashflow and stuff like that, possibly because they assumed or realized that the properties weren't going to be in the red.

[Blindsquirrel]

yes, no problem at all. Union Savings if in the midwest.

[Foggier]

I'd love the bank to just assume the properties wouldn't be in the red after they hand over the money to my LLC :)

Was this a small bank you got this to work with? About how much of a provable income history did the LLC have before you tried this? I have a feeling they will not want to talk to me until the LLC has 2 years of records.

[GrayGhost]

We used TD Bank, actually, and created the company about three months before we bought the properties. We did fund them pretty much instantly, though, and with about $100,000 as I recall. Other than that, they had no income history. However, my parents had superb income history, so that might be why TD was so generous.