Investors: Looking to Purchase Under Your LLC?

 

 We Can Help.

If you’re expanding your real estate portfolio, now is a great time to explore financing options that allow you to purchase investment properties directly under your LLC. This approach can offer clearer liability protection, streamlined bookkeeping, and a more professional structure for growing your holdings.

Whether you’re acquiring rentals, short-term properties, or long-term assets, we can walk you through:

• Loan programs designed for LLC-owned properties
• Requirements and documentation you’ll need
• How to structure your purchase for smoother underwriting
• Opportunities to leverage equity for your next investment
• Ready to grow your portfolio with confidence?

Let’s review your goals and find the right financing strategy for your LLC.

NMLS ID 394275 | DRE ID 01769353

What Is A Foreclosure?

 

Foreclosure is a process that’s triggered when a homeowner fails to make their mortgage payments. When a home is foreclosed on, a lender typically repossesses the property and attempts to sell it to recover their loss. Mortgage loans are secured by real estate. Because the home serves as collateral for the loan, a lender can legally repossess the property when a borrower fails to make their monthly mortgage payments.

What Is The Process Of Foreclosure?

While the foreclosure process may differ slightly from state to state, homeowners will likely experience common steps.

A lender contacts a homeowner to inform them of their delinquency and notify them about the possibility of foreclosure. The lender and homeowner explore options to keep the loan current. If the homeowner can’t bring their mortgage up to date, the lender may proceed with foreclosure. Depending on your state’s laws, your lender may file with a court to initiate foreclosure.

Early Intervention

Before a lender can proceed with foreclosure, the loan must be at least 120 days delinquent (with some exceptions). Lenders and loan servicers are required to make good faith efforts to contact a borrower about missed payments and foreclosure alternatives. A borrower can even take advantage of a few options to avoid losing their home even after a lender initiates the process. If there is no resolution, the lender usually initiates foreclosure once the borrower has missed at least four payments.

Foreclosure Counsel And Notice Of Default

Servicers or lenders referring a loan to foreclosure counsel is the first step in the foreclosure process. Depending on state laws, an attorney will initiate the process by filing a complaint or notice of mortgage default. Defaulting means a borrower has failed to repay a loan according to a lender’s terms.

Even after the first legal action, borrowers can apply for loss mitigation and look into options to avoid losing their homes.

Judicial Foreclosures Vs. Nonjudicial Foreclosures

There are two types of foreclosures: judicial foreclosure and nonjudicial foreclosure;

• Judicial foreclosures are usually more time-consuming than nonjudicial foreclosures. While all 50 states allow judicial foreclosures, some states require it. Judicial foreclosure requires a lender to file a lawsuit in court. The borrower receives up to 30 days to respond to the lawsuit. If they don’t respond, the court may rule for the lender, and the house can be foreclosed and sold. If they respond and go to court, the case will go before a judge to decide whether a settlement can be reached or the lender can foreclose.
• Nonjudicial foreclosure typically occurs when a mortgage has a power of sale clause, or the promissory note is tied to a deed of trust. If a borrower defaults on a mortgage with a power of sale clause, the lender doesn’t need to go to court. They can auction off the home after the warning and waiting period outlined in the state’s laws. In the case of a deed of trust, the trustee, usually a title company, can seize a property and sell it without a court order.

Eviction

If a homeowner can’t bring their loan current, eviction will likely be the next step in a foreclosure proceeding. Homeowners may receive a notice to quit from the lender to leave the home. How lenders contact homeowners varies by state. A letter or warning typically includes the timeline residents have to vacate the property – usually 3 – 30 days. Lenders may sue if residents ignore an eviction notice and stay in the home.

Foreclosure Added To Credit Report

A foreclosure is an adverse event that stays on your credit report 7 years from your first missed mortgage payment. Your existing credit history will significantly impact how foreclosure affects your credit score.

The hit your credit takes from a foreclosure can hurt your ability to purchase or rent a home. Many lenders won’t consider an applicant with a foreclosure on their credit report, but some lenders may be more forgiving, especially if the foreclosure happened years ago. Source

DRE ID # 01769353

NMLS ID # 394275

What Is A Conventional Loan?

 

Conventional loans, the most popular type of mortgage, come in two flavors: conforming and non-conforming.

• Conforming loans: A conforming loan “conforms” to a set of Federal Housing Finance Agency (FHFA) standards, including guidelines around credit, debt and loan size. When a conventional loan meets these standards, it’s eligible to be purchased by Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that comprise much of the mortgage market.
• Non-conforming loans: These loans do not meet one or more of the FHFA’s standards. One of the most common types of non-conforming loan is a jumbo loan, a mortgage in an amount that exceeds the conforming loan limit. Non-conforming loans can’t be purchased by the GSEs, so they’re a riskier prospect for lenders.

Pros of conventional loans

• Available from the majority of lenders
• Can be used to finance primary residences, second or vacation homes and investment or rental properties
• Can put down as little as 3% for a conforming, fixed-rate loan

Cons of conventional loans

• Need a credit score of at least 620 to qualify
• Lower debt-to-income (DTI) ratio threshold compared to other types of mortgages
• Need to pay private mortgage insurance (PMI) premiums if putting less than 20% down

Who are conventional loans best for?

If you have a strong credit score and can afford to make a sizable down payment, a conventional mortgage is the best pick.

“Conventional loans are flexible and suitable for a wide range of homebuyers, especially those with good-to-excellent credit scores, stable income, and some savings for a down payment,” says Matt Dunbar, senior vice-president of Southeast Region for Churchill Mortgage. “These loans offer competitive interest rates and flexible terms, making them attractive to buyers who meet the qualification criteria.” Source

DRE ID # 01769353

NMLS ID # 394275

Chattels and Fixtures in Real Estate: Protecting Your Purchase

 

Understanding the distinction between chattels and fixtures is essential in any real estate transaction to ensure a seamless purchase and avoid post-closing complications. Chattels, being movable personal property, typically appliances, furniture, and decorations, are not automatically included in the sale unless specifically listed in the Agreement of Purchase and Sale. They differ from fixtures, which are permanently affixed to the property, such as built-in cabinetry, light fixtures, and HVAC systems, and are presumed to be part of the real estate unless explicitly excluded in the APS.

While thorough attention during the transaction process is crucial, parties must also be ready to tackle potential post-closing issues, especially those related to the condition and functionality of chattels and fixtures. Problems may arise when items included in the APS are found to be missing, damaged, or not functioning after closing. By default, chattels and fixtures specified in the APS are expected to be in working order at the time of closing, making it the seller’s responsibility to ensure they meet this standard. Common post-closing complaints involve faulty appliances and systems such as ovens, dishwashers, air conditioning units, furnaces, security systems, and locks. If any such items are defective, the buyer may have grounds to seek remedies from the seller. However, when the APS explicitly states that the property, including its chattels and fixtures, is sold “as-is,” the buyer’s options for recourse are significantly limited unless the seller has concealed or misrepresented material facts.

A pre-closing walkthrough is essential for buyers to confirm the condition and functionality of chattels and fixtures included in the APS. This step ensures appliances are operational, light fixtures are intact, and all agreed-upon items remain on the property. If issues are discovered post-closing, buyers should first review the APS to understand their options, as it specifies the items included and their expected condition. Clauses requiring items to be in “working condition” or providing warranties strengthen the buyer’s position. Buyers can then negotiate with the seller for compensation or repairs, as many sellers prefer to resolve minor issues amicably. If negotiations fail, buyers may pursue legal action, such as filing in small claims court for lower-value disputes, provided they can demonstrate a breach of the APS or concealed defects.

Home warranties or insurance can offer solutions for addressing defects. A home warranty plan may cover certain appliances or fixtures, so buyers should review its terms carefully. For systems like plumbing or HVAC, filing an insurance claim might be an option. If repairs are needed, buyers should document all costs to support negotiations or potential legal action.

Preventing disputes over chattels and fixtures starts with a well-drafted APS. These items are integral to real estate transactions, and disagreements about their condition or presence can cause significant frustration post-closing. Buyers can minimize risks by adopting a proactive approach, including precise APS terms, thorough pre-closing inspections, and detailed documentation. Should issues arise after closing, understanding your legal options and engaging in fair negotiations with the seller can help resolve matters efficiently. Source

DRE ID # 01769353

NMLS ID # 394275

What Is An All Cash Offer?

 

With an all-cash offer, the buyer is offering to pay for the home in full, upfront, instead of financing the purchase by taking out a mortgage. The buyer might tap their savings, investments, funds from the sale of another property or another source, such as gift money from family members.

You’ll still need to provide financial documentation, since the seller will want proof of funds — in fact, you may need to provide even more, or more detailed, statements than a lender might ask for. And you’ll still have to pay certain closing costs, like legal fees, the cost of a title search and title insurance and other administrative expenses. But you’ll get to skip the usual lender-related closing costs.

Advantages of using cash to buy a home:

• Beat out other buyers
• Speed up the home buying process
• Save on closing costs
• Lower your long-term costs
• Beat out other buyers

A shortage of housing inventory has fueled a very competitive market. In fact, according to NAR, every home for sale in February 2025 received an average of 2.3 offers — and an all-cash offer stands out from the crowd. Put yourself in the seller’s shoes: If you’re comparing two bids that hinge on the ability to get full lender approval with a third offer that requires nothing and is ready to go, which would appeal to you more?

Speed up the home buying process

Paying with cash can also simplify the home-purchase process. There’s no loan application, preapproval or approval, so you’ll save yourself the potential stress of shopping for and dealing with a lender. You can likely save a good chunk of time, too, since a lender won’t need to gather and comb through all your paperwork. Underwriting — the process by which a lender evaluates your finances and decides whether to approve your mortgage application — typically adds an additional 30 to 45 days to the home-purchase experience.

Save on closing costs

If you have the funds, paying all-cash for a home definitely saves you money, since you won’t have to pay any of the costs associated with taking out a mortgage. The origination fee and other closing costs can add up to 2 to 5 percent of the purchase price. So, if you’re purchasing a $300,000 home, eliminating closing costs might help you lower your bill by somewhere between $6,000 and $15,000.

Lower your long-term costs

Along with saving on upfront fees, paying in cash means you won’t be charged interest, which adds up to huge savings. For example, let’s say you’re comparing a $425,000 cash offer with a $340,000 30-year mortgage (a loan on the same home after 20 percent down) with a 6.5 percent interest rate. Over the course of that loan, you would pay nearly $433,651 in interest, for a total cost of $773,651.

How much money will you have left if you pay in cash?

If you pay cash for a home, you might feel good knowing you won’t have a big bill each month, but make sure you don’t stretch your finances too thin to accomplish that. You’ll still need to have an emergency fund in place, and you’ll need to have enough money to cover things like home maintenance and repairs, property taxes, homeowners insurance and utilities. You’ll also want to make sure your cash purchase doesn’t impact saving for retirement or other long-term financial goals.

NMLS ID 394275 | DRE ID 01769353

Source

8 Steps to get the Best Mortgage Rates

 

Ready to learn how to get the lowest possible mortgage rate? Follow this eight-step process...

1. Improve your credit score

Boosting your credit score is a great first step to getting a lower mortgage interest rate. 

“A credit score is always an important factor in determining risk,” says Valerie Saunders, past president of the National Association of Mortgage Brokers (NAMB). “A lender is going to use the score as a benchmark in deciding a person’s ability to repay the debt. The higher the score, the higher the likelihood that the borrower will not default.”

To be considered for a conventional mortgage, you’ll generally need a score of 620 or higher. However, the best mortgage rates go to borrowers with credit scores of 740 or above.

To improve your score, pay your bills on time and pay down or eliminate credit card balances. If you must carry a balance, make sure it’s no more than 20 percent to 30 percent of your available credit limit. Also, check your credit score and report regularly and look for any mistakes. If you find errors, correct them before applying for a mortgage.

2. Build a steady employment record

Lenders prefer you to have at least two years of steady employment and earnings, ideally from the same employer. Be prepared to show pay stubs from at least 30 days prior to your mortgage application and W-2s from the past two years. If you earn bonuses or commissions, you’ll need to provide proof of those, as well.

It can be more difficult to qualify if you’re self-employed or have multiple part-time jobs, but it’s not impossible. If you’re self-employed, you might need to furnish business records, such as profit and loss statements, in addition to tax returns, to round out your mortgage application.

What if you’re a graduate just starting your career, or you’re back in the workforce after time away? Lenders can usually verify your employment if you have a formal job offer in hand, so long as the offer includes your income. The same applies if you’re currently employed but have a new job lined up. Lenders might flag your application if you’re switching to a completely new industry, however.

Gaps in your work history won’t necessarily disqualify you, but the length of those gaps matters. A short period of unemployment due to illness is easier to explain to a lender than, say, unemployment of six months or more. 

3. Save up for a down payment

Putting more money down — ideally, at least 20 percent — can help you get a lower mortgage rate. Of course, lenders accept lower down payments, but putting down less than 20 percent usually means you’ll pay a higher mortgage rate, and you’ll have to pay private mortgage insurance (PMI). PMI costs about $30 to $70 per month for every $100,000 borrowed, according to Freddie Mac. The sooner you can pay down your mortgage to less than 80 percent of the total value of your home, the sooner you can get rid of mortgage insurance, reducing your monthly bill.

4. Understand your debt-to-income ratio

Your debt-to-income (DTI) ratio compares your total monthly debt payments to your gross monthly income.

In general, lenders prefer your mortgage cost no more than 28 percent of your gross monthly income, and that your mortgage and other debt payments total no more than 36 percent of your monthly income. For a conventional loan, lenders may approve DTI ratios of up to 45 percent. This is more likely if you have significant savings or a strong financial profile otherwise. 

If you make $5,000 per month, you’ll want a mortgage payment of no more than $1,400 ($5,000 x 0.28). Your mortgage and other debt payments should ideally remain below $1,800 ($5,000 x 0.36). You can improve your DTI by increasing your income or paying off debt.

5. Check out different mortgage loan types and terms

If you think you’ve found your long-term home and have good cash flow, consider a 15-year fixed-rate mortgage instead of the traditional 30-year fixed-rate mortgage. You’ll pay more each month, but you’ll pay off your home sooner. Plus, you’ll pay less in interest since interest rates on 15-year mortgages tend to be lower than those of other mortgage options. You can also choose a 15-year term if you’re refinancing your current mortgage.

Alternatively, while rates are high, you might consider an adjustable-rate mortgage (ARM). With these types of loans, you’ll start with a fixed rate for a set time — often five or seven years — which is typically lower than what you’d get with a fixed-rate mortgage. After this period ends, your interest rate can increase or decrease for the remainder of the term. When that happens, or whenever rates fall, you could refinance an ARM loan into a fixed-rate mortgage.

Finally, government-backed loans may offer lower rates than conventional loans. Your options include:

• FHA loans: Insured by the Federal Housing Administration, FHA loans are popular with first-time homebuyers because of their flexible financial requirements.
• VA loans: If you or your spouse have served in the military, you could consider a VA loan, which is guaranteed by the U.S. Department of Veterans Affairs. These loans typically have no down payment requirement.
• USDA loans: Guaranteed by the U.S. Department of Agriculture, the USDA loan program is designed to help low- and moderate-income people in rural areas buy a home. There’s no down payment needed, but your home must be in an eligible area, and your income cannot exceed a certain amount, based on your location and household size.

6. Consider paying mortgage points

If you’re willing to pay a fee, you can buy your way to a lower interest rate using mortgage points. Each point costs 1 percent of your mortgage amount and typically reduces your interest rate by 0.25 percent. You can think of mortgage points as a form of prepaid interest.

Let’s say that you have a $400,000 home loan with a 7 percent interest rate. If you want a lower rate, you could buy a mortgage point for $4,000 and knock your rate down to 6.75 percent.

However, buying mortgage points isn’t right for everyone. Recouping the upfront costs typically takes around five years, so this strategy isn’t ideal if you plan on selling within a few years.

7. Compare offers from multiple mortgage lenders

When you’re looking for a mortgage, even for a refinance, don’t accept the first rate you’re quoted. Shop around with at least three lenders, including your own bank or credit union and at least one online option. 

“Shop and compare based on the loan estimates received,” Saunders says. “You wouldn’t normally purchase a car without test-driving it first. Test drive your loan before proceeding with your purchase.”

Even if the interest rates are comparable, lenders’ offers come with different fees, closing costs, private mortgage insurance premiums and more. By shopping around, you can choose the offer with the most favorable terms.

8. Lock in your mortgage rate

Sometimes the closing process takes several weeks, during which rates can fluctuate. After you sign the home purchase agreement, ask your lender to lock your rate. The service sometimes comes with a fee, but it often pays for itself, especially in volatile rate environments. Source

How Important Is Curb Appeal When Selling a Home?

The old adage “never judge a book by its cover” is an important one. But the truth is, first impressions are hard to recreate – especially when it comes to house hunting. According to a RE/MAX Twitter Poll, a majority of responders – 46.2% – agree that a shabby exterior is the biggest turn-off when touring homes.

Here’s why curb appeal may be critical to selling a home;

Exteriors reflect interiors

Curb appeal is the external appearance of a home, comprised of landscaping, painting, staging and overall aesthetic. Acting as a hint of what’s to come, the exterior of a home speaks volumes to its interior in terms of maintenance and style. If the outside displays the wear and tear of a home, homebuyers may never open the front door to see if the inside is in sync or not. Even if the kitchen has been renovated with stainless steel appliances or the floors received an upgrade to hardwood, unpleasant or outdated curb appeal will have certain buyers passing by the listing before peeking inside.

When a home has an unkempt exterior – think dead grass, chipped paint or overgrown weeds – prospective buyers could assume the inside needs repairs, too.

According to Torrence Ford, a real estate agent and owner of RE/MAX Premier in Georgia, “move-up buyers” – those upgrading from their current home – set much higher standards for a home’s exterior presentation than first-time homebuyers in today’s market.

“First-time homebuyers just want to lock down a house. A move-up buyer, however, will be more affected by curb appeal and consider it alongside their lifestyle,” he says.

And it’s not just the prospective buyer that forms an impression when looking at the house from the outside. Ford says that appraisers, inspectors and real estate agents likely are also taking a home’s curb appeal into account.

Listing photos (almost always) open with exterior shots

The assessment of curb appeal begins long before buyers arrive on site for a showing.

According to the RE/MAX Future of Real Estate Report, 94% of North Americans searching for properties are doing so online, allowing for them to view a larger quantity of properties in a shorter period of time, even on the go. With photos becoming the catalyst for a buyer’s initial impression, many online browsers could skip over a listing due to an unsightly appearance from a quick snapshot. Plus, staging eye-catching steps, a stoop or a porch adds trendy detail or color, creating more compelling shots for a photographer.

Money talks: Curb appeal could add to overall value

According to REALTOR® Magazine, a study revealed that homes with an appealing exterior sell, on average, for 7% more than comparable homes with a rundown appearance.

In his experience, Ford believes that buyers are more likely to write a higher offer when the entirety of the property feels well cared for. Each small detail that impresses buyers will count toward their overall impression of the home’s worth.

Revamping the front yard and home exterior also increases the value of the neighborhood and surrounding area. “It has a domino effect. It leaves a lasting impact on the longevity of the neighborhood,” Ford says. “Work on curb appeal and the neighbors will start jumping in, too. When one neighbor starts making upgrades, everybody else tends to want to clean up their property, whether it’s with painting, replacing the roof or even just mowing the lawn.”

The most important aspect of curb appeal is to ensure the exterior is cleaned up even before sinking money into improvements. This is as simple as mowing the lawn, trimming shrubbery, pulling weeds and eliminating miscellaneous items or garbage.

Creating inviting ambience goes beyond yard care. Sellers can consider adding a number of inexpensive finishing touches, like potted plants or flowers, a new welcome mat, new light fixtures or patio furniture staged on the front porch. Though minor, these accents can help a prospective buyer envision coming home to the space. “[When updating a home], we will replace shrubbery, repaint the front door, and repaint the house’s foundation so the landscape has a clean backdrop,” Ford says.

He adds that implementing new house numbers, like swapping small, cursive numbers for larger contemporary ones, can help older properties get a quick and easy revitalization. Sellers may also consider a fresh coat of paint on the home’s exterior, a newly paved driveway or a new roof if its rusty or damaged. “Curb appeal makes all the difference,” Ford says. Source