Can first rental purchase be via LLC?

Question

I've zeroed in on a 4-plex with an asking price of $145k. All other things checking out and being ok, if I apply for the loan through a new LLC is that even doable? A buddy has partnered up with me in the LLC and we both have $15k each to put in and we each have excellent credit and professional jobs.

Would this be a conventional loan or a commercial loan?

Aisha H. · Answer

@Orlando Kell I have found it harder to get refi if the property is under an llc, so if you are planning to go that down the road you may want to check with local banks, most of the regional banks classify it as commercial and will ask for historical P&L which a new LLC wont have. Having said that I do love the fact that none of the properties are under a personal name....Liability protection is kind of iffy especially if you are not high net worth. If you are you will be using more than just an LLC to protect you

Gavin Welch · Answer

Orlando, I agree with Ryan.. An LLc is always a good idea for liability purposes.  Secondly, if you are planning on purchasing more properties your llc will have some established credit.

Good luck..

Account Closed · Answer

Yes you may certainly buy it in the name of your LLC. In fact, I would highly encourage you do that.

A commercial loan is possible (local banks may handle it better than the big boys). You will have to more than likely put a "personal guarantee" on the loan, but it isn't in your name.