Investment LLC Property Mortgage Guidelines For Investors

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will cover and discuss investment LLC property mortgage guidelines for real estate investors buying and/or refinancing properties. Can You Close Your Investment Property Under A Limited Liability Corporation? Most of the non-QM wholesale lenders associated with Gustan Cho Associates allow the investment property purchase and/or refinance to close under a Limited Liability Corporation (LLC). This is great news for real estate investors who need to separate their investment property from their personal names. However, borrowers need to understand that this does not mean the investment property is a non-recourse loan. It is still a recourse loan and the borrower is still on the hook and personally liable for the investment property loan. In this article, we will discuss and cover Investment LLC Property Mortgage Guidelines.

Investing In Real Estate During A Booming Housing Market

The housing market is booming. There is a major shortage of homes versus the demand for homebuyers. Many real estate investors are getting back to investing in real estate again. Countless investors lost their real estate holdings during the 2008 real estate and mortgage meltdown. The Great Recession of 2008 was the longest-lasting recession in history. Many considered it as the Second Great Depression and not a Recession.

Many Investors Turning To Real Estate As Investment of Choice

The real estate market is hot. Many areas in the country are appreciating double digits. There is a major rental market shortage throughout the U.S. Real estate investors were limited to cash-only investment after the 2008 Real Estate Crash due to a halt in investment property financing. Fannie Mae-Freddie Mac’s 5 to 10 financed properties limited real estate investors to a maximum of 10 financed properties. Gustan Cho Associates Mortgage has now launched alternative finance loan programs with no limit on the number of properties financed. Investment LLC Property Mortgage Guidelines enable investors to close their real estate loans under a Limited Liability Company

Types Of Investment Loan Programs Allowed To Close Under LLC

Gustan Cho Associates Cash Flow mortgage program allows investment property borrowers to qualify based on rental analysis to determine property cash flow. Borrowers’ personal income is not required. Personal income tax returns are not required to meet qualification requirements. This often saves borrowers countless hours in preparing financial statements and federal income tax returns.

High-Lights Of Asset Based Investment Home Mortgages That Can Close Under LLC

Here are the highlights:

  • No personal income used to qualify
  • Qualification requirements are based on the subject property cash flow
  • There is a mandatory 2 years seasoning after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale to qualify
  • Minimum credit scores down to 620 FICO
  • Starting Mortgage Rates at 6.0% range and up
  • 20% down payment requirements
  • Borrowers income and/or debt to income ratio does not matter
  • Must have a current mortgage
  • 1-4 units and condominiums
  • No limit on the number of properties financed
  • Loans up to $5 million
  • Up to 2% in seller concessions allowed to use for closing costs

Asset Depletion Loan Program

What is an asset depletion loan program

Gustan Cho Associates offers Asset Depletion Loan Programs. This loan program is for real estate investors with no income but has substantial liquid assets. Please click on Our Asset Depletion Loan Program Guidelines for more detailed information and watch our video/blog. Under our Investment LLC Property Mortgage Guidelines, borrowers can close asset depletion loan programs under Limited Liability Company (LLC).

Investment LLC Property Mortgage Guidelines And Requirements

Gustan Cho Associates, per Investment LLC Property Mortgage Guidelines, allows investment homes to be under a Limited Liability Company. It needs to be solely an LLC for real estate investments. It cannot be an LLC for an automotive business, dry cleaners, law office, or any other entity. It needs to be a valid LLC from any state in the U.S. It cannot be a partnership. If you do not have an LLC and want to create one, you are allowed to do so per Investment LLC Property Mortgage Guidelines. Setting up a Delaware Limited Liability Company is best. There are benefits and advantages to why a Delaware LLC for investment real estate is recommended. This blog is not to engage in legal or accounting advice.

Experts Advice On Investment LLC Property Mortgage Guidelines

Here is what our investment property senior mortgage Adviser Alex Carlucci stated:

When debt-to-income is too high for investment properties, there are debt-service coverage loans. Debt-service coverage loans go off of the cash flow of a property. Debt Service Coverage Calculation is done as follows: Add principal, interest, taxes, insurance, and homeowners association dues. Then divide it by the projected rent of the subject property. Programs go up to 100% debt-service coverage

Fix and Flip Loans are for real estate investors looking to buy and rehab a property to sell or hold. New Construction loans are similar to fix and flip loans. Line of credits is available for both fix and flip and new construction loans and is offered at Gustan Cho Associates. I strongly recommend a Delaware LLC. 

Delaware General Corporation Law is generally considered pro-business. Delaware keeping business laws up to date. The technology, easy access to services, and informationstored electronically For tax purposes, its benefits is Delaware’s reputation to corporate law and their attitude towards corporation law and the efficiency of the law and low start up costs and annual fees and maintenance Once ready to form an LLC, a company can be paid to set up a Delaware LLC. Can set one up on your own through the division of online services for Delaware. Can follow the how to formon Delaware’s website. Only some commercial investors prefer a Delaware LLC.

Investment LLC Property Mortgage Guidelines On The Types Of Documents Required

Investment LLC On The Types Of Documents Required


If borrowers were to close the investment property under an LLC, lenders will require the following documents. Article Of Organization, which is also referred to and/or known as the certificate of formation. This form contains the legal name of the Limited Liability Company. It also names the managing partner, members of the LLC, and contact information of the registered agent. Duties of each member. Ownership information of stockholders. There is the operations agreement that needs to be submitted as well.

Qualifying For Mortgage Under LLC With Direct Lender With No Overlays

Real estate investors who need to qualify for an investment mortgage loan under the name of an LLC, please contact us at Gustan Cho Associates. We are experts in helping real estate investors get financing. Many of our borrowers often do a 1031-Tax Exchange when selling a property and need to purchase a like or higher value property. If they are selling their property in the name of an LLC, they need to purchase the new property under the name of the same LLC to take the 1031 tax benefits. We can help. Please contact us at 262-716-8151 or text us for a faster response. Or email us at [email protected] The team at Gustan Cho Associates is available 7 days, evenings, weekends, and holidays.