CAN AN INVESTMENT GROUP GET FINANCING?

Are you a part of an investment group looking to purchase rental homes. Can an investment group get financing? Can you get financing if you purchase rental homes with a friend? Yes, you can.

FIRST

First, each of the investors must complete a loan application to qualify for conventional financing. Example: You and 4 friends are looking to purchase a rental home, all 5 must complete a loan application. The lender will base the interest rate off of the lowest credit score in the group.

SECOND

Plan on saving enough to make a 20% down payment, or even a 25% down payment to get a better interest rate.

THIRD

Third, when it comes time to close, you must disclose in your individual names. So, if you wanted to form a partnership or LLC, you cannot close in the name of the partnership or LLC. The lender will lend to you individually but will not lend to a business entity because the entity could go out of business without the lender having any recourse. As such, make sure you get enough insurance to cover you and all in your group in the event of an accident on the property. You may want to consider an umbrella policy which provides coverage over and above the liability limits in the policy.
We have helped many friends/families/groups finance investment properties. We offer a variety of products and services, ask us how we can assist you today. We work for you, not the lender.

Counsel Mortgage Group®, LLC
Licensed in Arizona, California, Hawaii and Illinois
480-502-1000
NMLS #178927
AZ MB #0909580
HI-178927
IL MB.6761723
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