LLC’s in real estate

Member since 2020 · 5 posts · 10 votes

Before I went ahead of spend money on creating an LLC wanted to know if Q1. Am I able to buy my first investment property with my LLC? Q2. Will the banks loan me the money needed to get an investment property or will i potentially have to add personal funds to purchase?

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Ghassan Jabali

Member since 2025 · 143 posts · 90 votes

Hello Isaiah,

I hope you're doing well and having a great week so far.

1) Yes, it is possible to purchase property directly inside of an LLC.

2) Some banks may loan money to you and/or your LLC. However, they may also charge higher interest rates as a commercial loan. You can of course use your own money to fund the LLC as a contribution and then have the LLC purchase property directly without financing.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

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Ghassan Jabali
Member since 2025 · 143 posts · 90 votes
1y
Hello Isaiah,
I hope you're doing well and having a great week so far.
1) Yes, it is possible to purchase property directly inside of an LLC.
2) Some banks may loan money to you and/or your LLC. However, they may also charge higher interest rates as a commercial loan. You can of course use your own money to fund the LLC as a contribution and then have the LLC purchase property directly without financing.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
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E. James JacksonBusiness Member
USA · Member since 2025 · 20 posts · 22 votes
1y
Hey Isaiah,

1. Yes, for sure! This is a very common practice.

2. This can depend on the lender, loan product, and experience.

Many lenders will also give you the option to have yourself as the borrower and hold title in the LLC, which is generally what is recommended if you want to avoid the costly terms of a commercial loan. If you have partners, this can be a little more complex, and managing this while trying to uphold the corporate veil can also get difficult. I have seen clients in this situation to set it up as a loan to your business or a loan in proxy to help clearly delineate the difference between you and the business (not legal advice).

I am happy to jump on a call to discuss your situation in more depth so I can provide more specialized advice, as many factors can affect what is most advantageous for you. I hope the general response helps as well.
[email protected]720-204-8191
RMD Consulting and Advisory513 Reviews
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Jason MalabuteBusiness Member
Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 898 votes
11mo
Yes, you can buy property directly under an LLC. Some banks may be willing to lend to you or your LLC, but those loans are usually treated as commercial loans and may come with higher interest rates.
Malabute & Company CPAs525 Reviews
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