» Real Estate Investors with LLC’s Receive Another Blow! » Posted by Realestator
Fresh on the heels of yesterday’s news that Fannie Mae is relaxing down payment requirements to owner occupied purchasers only, Real Estate Investors with LLC’s are now taking a hit as well.
Here’s what has happened:
- Freddie Mac has just changed their rules to NOT allow refinances if the property has been in an LLC at any time for the past 6 months.
- Fannie Mae is expected to follow suit.
- If you have your property in an LLC, you have a few choices:
- Leave it in there until you sell and realize you probably won’t be able to refinance.
- Pull it out of the LLC and lose all liability protection.
- Use a Trust / LLC envelope to protect you, the owner, and keep the lenders happy.
While Real Estate Investors understand that the rules are always changing, it is frustrating to be treated like the red-headed step child of the home buying universe. Are the lenders going out of their way to make it difficult for us to invest, and costly if we do so?
One has to wonder - this is just another blow that will require us to use creative real estate financing to overcome.
For more real estate investing information, visit the realestator’s website at www.real-estate-investing-support.com
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