Commercial Loan for first property under a brand new LLC

[Miki M.]

Hi there! I found BiggerPockets through their YouTube videos and became a fan and decided to become a member here, and I just wondered if anybody could give me advice.

After reading several books by Robert Kiyosaki and Ken McRoy, my husband and I have formed an LLC in Texas to begin our journey as real estate investors but we are struggling to find lenders to provide our company a commercial loan. Since it is a brand new LLC, we are fully aware that we have to be personally reliable for the commercial loan.

For those of you who have purchased your first investment property under your brand new LLC, how did you succeed to get a commercial loan? Did you buy all cash? We are hoping to purchase a property between $145k to $175k with 20% down as an experiment for Buy&hold and we know that we have to turn to portfolio lenders, not conventional ones like big banks.

Some online lender said they could help if it were our 2nd investment property, not first, and we know we have to call many more places, including local community banks. I appreciate very much if you could give me advice and share your stories with lenders regarding your first property under your LLC.

[Leon Li]

There is no good reason to purchase your first property under the LLC. You should max out your 10 conventional mortgage per person, to take advantage of the good rates. You can always move the property into the LLC after purchase.