I own 2 rentals and 1 house in my name. I am being denied for credit bc of high debt to income. Should I LLC?

Answer 1

An LLC won't help you. You'll still be personally liable for all those debts anyway. It would potentially protect your personal assets if you were sued by a tenant though, so for that reason it might make sense to set one up.

But it will have zero bearing on your ability to qualify for new financing.

Answer 2

you need a hi FICO and 25-30% down.

if u fill out a schedule E for income/costs on these properties, u basically pitiwash the expenses and can still qualify for the loan

an educated guess is u do not report income therefore ur hands are tied.

email me i will see what is possible.

otherwise must cash-in on one property in order to have down payment to buy 2 more. so on and the cycle continues. always remember one bad pick spoils the bunch! good luck.
-mortgage pro, 1 million years give or take 100

Answer 3

you can use an LLC to purchase other properties but you can also transfer your current properties into a trust to lower your debt to loan ratio. There are many ways to legally manuever yourself when dealing in real estate. If you would like more personalize advice on how to set up trusts or LLC contact me via email on my profile.

Answer 4

be certain ur stability to shrink on revolving debt is <40 5% ie. credit shrink is one thousand, have stability under 450 tradelines a million-mtg 2-mtg 3-mtg (if fastened/hands are seen installment. HELOCs are revolving) cc's1-x additionally = revolving. definite, as u r conscious the ratio of tradelines revolving/installment harm ur score. and definite 675 middle fico sucks. i advise upload installement loans. finance some computers one after the other, consistent with probability a crappy automobile. cancel purely in the near previous won enjoying cards, length of credit background is likewise significant to maintain. bear in concepts 'member on condition that...'? thats why. choose a consolidation own loan, e mail me i visit work out what could be executed. gl~

Answer 5

I had something similar happen. I had a home equity line of credit and a lender looked at it like a credit card and applied a 2.5% payment. Then they said we can only take 1/2 the rental income. Duh, if you double my mortgage payment and half my rental income, my finances don't look so good.
You need to find a lender that can understand your finances.
Good luck