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How canI purchase investment properties without them all being on my credit?
By Tom | December 16, 2007
bjiou1978 asked:
I want to purchase homes, rehab them and rent them out. How do I go about getting more properties if the houses that I already have are affecting my credit (income/debit ratio, credit score etc). Is there a way that I can start a legal business name and have all properties under the business? If so how does that work as far a trying to take out a loan for the houses under the business name? I want to separate by primary residence from my investment properties by not having them under my credit. How can I do this legally in Texas
Allen
Topics: investment properties | 2 Comments »
December 17th, 2007 at 9:23 pm
You are on the right track, although many banks do not give you unlimited spending power….they want to know what you are doing, and in real estate, this is not such a good time for this. Many home prices are dropping since no one can afford the ridiculous amounts that you types have been asking the last few years. The wise thing to do is buy when it’s cheap, but right now, buying homes for investments aren’t wise, since you pay an inflated price for them.
I live in southern Cali and right now there are so many homes by investors going for sale, since the decreased rent prices will actually cause the owners a loss on that house if they continue to rent it out. I have no sympathy for them, or you. They drive the housing prices up just so they can afford their Hummer or BMW. But what happens when the federal government increases loan rates…..this is what happens, a balancing out, and those that bought high, hoping to sell it higher are out of luck.
December 20th, 2007 at 1:48 am
Even if you hold title as an LLC, you will still have your name on the note. Otherwise you could just walk away without affecting your credit.. what lender would be ok with that??