3 ms·
20% down payments aren’t really necessary anymore. plenty of lenders will let you pay 10% with no PMI or less.
by tempsy 6y ago
20% down payments aren’t really necessary anymore. plenty of lenders will let you pay 10% with no PMI or less.
- busterarm 6y agoThough still generally necessary if you wish to buy with an LLC, unfortunately.
- rhino369 6y agoWhat are the benefits of buying with an LLC?
- g00gler 6y agoTaxes for one. Everything you do for the home is a write-off assuming you have other income rather than an out and out loss. Water heater? WRITE OFF! New roof? WRITE OFF!
- busterarm 6y agoPlus you're not limited by your personal deductions which are now capped at the state and local level.
- busterarm 6y agoPrivacy, potentially. House sales are public records and anyone willing to pay $30 can track you down. If you have a Wyoming LLC holding company (which are effectively anonymous when paying for a registered agent service) that owns & manages your in-state LLCs, then good luck finding you. This is generally how celebrities hide from stalkers, etc. This is also beneficial when you're managing your own properties that you rent out. Tenants that know you're the owner will try to walk all over you. When you just tell them that you're the property manager, you're just enforcing the owner's wishes. You're "just the middleman". It's not their business to know that you're both. This also helps protect your separation of your business entity from yourself if for some reason they have to sue your LLC. If you don't represent yourself as the owner (because your LLC is), you have fewer problems to deal with. Also, taxes like the other poster mentioned. Plus if your life circumstances change and you want to turn your home into a rental, you're going to want to do this anyway and not having to sell your home to your LLC will save you a chunk of cash.
- milkytron 6y ago> Privacy, potentially. House sales are public records and anyone willing to pay $30 can track you down. It can also be done for free using various methods, rather quickly too.
- johncessna 6y agoI generally do that, does the bank still have you Cosign? I put properties into an LLC and always need to cosign on the note. I was under the impression that putting 20% was mandatory for investment properties if you're getting a note from a traditional lender (ie bank, not the mob)
- busterarm 6y agoThat depends on the bank and the structure/finances of your LLC(s). If your LLC already has a good business relationship with the lender and enough assets, you can get them to skip this. Also you don't have to put down 20% if you're willing to pay PMI and a bank is willing to lend to you, but to be competitive some banks are foregoing PMI (likely self-insuring the mortgage? Not sure how they can but I've seen it done)...which is craaaaazy to me.
- johncessna 6y agoAh, I missed the context. I was speaking from the standpoint of investment properties. If you're buying a place to live in, then, agreed, you don't need 20% down. I think there are some products with 0% down.
- asimpletune 6y agoDo people ever write off rent with their Llc?