Buying Brownstone NYC w/LLC- questions

Hello,

My business partner and I are looking to purchase a mix use building in NYC (office/retail space w/2-3 apts) He is international, Im a US citizen. Looking at buildings in the 2.5-3mm range, w/ about $700k downpayment.

Currently we run a business in NYC together and are trying to explore our options on how to structure this purchase. I understand that using an LLC is one option. Would the advice on that be to start a brand new LLC strictly for investment? If so, how would lenders look at a new LLC?

Would another option be to look into using our existing business to source the loan?

Any information appreciated! This forum has been great so far

brooklyn718

in Home Buying 6 years and 9 months ago

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brooklyn718

in Home Buying 6 years and 9 months ago

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Thank you for the advice no-permitz. Ive reached out to Adam to discuss further. Im going to meet with Chase bank to discuss this SBA 504 loan option as well
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yudashasom | 6 years and 9 months ago

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You’d be better off talking to a broker like Adam Dahill who posts on here.

One option that comes to mind is a SBA 504 loan.

brooklyn718

in Home Buying 6 years and 9 months ago

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Thanks for the info! In our case we would be operating our own business out of the building. Right now we have approx $10k/month rent and would like to re-direct that into the building. When you say there are good loan options available, can you elaborate?

yudashasom | 6 years and 9 months ago

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On a building like you describe, most lenders will want title held in a single purpose entity, You, your partner, and or the business would be the guarantor, but the building would be deeded to a new entity.

If you would operate your business out of the building, there are good loan options available. Otherwise the loan would, in nearly all cases, would be underwritten based off the building’s income and expenses only – not your personal income.

EJR | 6 years and 9 months ago

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There are pros and cons to using a new LLC or buying the property through your existing business, or some other structure. If you’re in the business of owning and managing real estate for investment purposes (or want to be), then you should have a lawyer engaged to assist you with your goals. It will be hard to get the answers you need without a thorough understand of both your existing business and your future goals.