Posted by JHyre in Ohio on April 02, 2003 at 18:39:49:
Difficult financing is definitely a price of having an LLC. Having the loan in your name is inevitable for small investors - even if the loan were made to the LLC, the bank would want a personal guarantee.
If the banker says transferring the loan to the LLC is OK, ask him if the loan has no “Due on Sale” clause, and if it does, does the bank intend to waive it? Also, how many banks have you tried?
John Hyre
Buying first properties as an LLC - Posted by Robert Moreno
Posted by Robert Moreno on April 02, 2003 at 13:18:47:
Hi.
My father and I want to start investing in properties to hold for maybe 2-5 years and then sell cashing in on the equity. Our goal by the end of the year is to have at least 3 homes. Hopeing to build up our portfolio buy 3 per year.
We want to set up an LLC but trying to get financing for an LLC is impossible. I have been reading a lot of information on here and the norm is to buy investment properties as an LLC. My question is how can you do this when no lender is willing to lend to a LLC. I also talked to a lender that said the way to get around this is to put the property in mine and my fathers name and then deep the property over to the LLC. But the only problem with that is the mortgage would be under our names, which most people say not to do. Any help that you can give us would be very helpful.
thanks for you time
Robert Moreno.