LLC

[Casey Fisher]

So I own a rental property that is under my name (deed, mortgage, and insurance). I would like to deed the property to an LLC that I will create. After discussing with a few experts (my CPA, my mortgage rep, and an attorney) and asking around, it seems there is a catch 22. Banks don't like lending to LLC's, especially new ones. As an investor you want to protect yourself, but in order to get a loan the LLC has to show some "experience" in paying down debt, which this LLC will not have (even though I own the LLC and have been managing the property on my own for 11 years). I am risking a lawsuit and my personal assets are at risk because I can't get a mortgage through an LLC that allows me to make money on my property. However, where I am now, trying to deed the property to my LLC my insurance has to be changed to the LLC as well, which raises a red flag with the mortgage company because they want me to refi at a higher rate because the LLC doesn't have the history. Any suggestions here? Anyone have the same experience? What should I do?