How to purchase a property under an LLC

5 Replies

Is it possible to create an LLC and get a loan to purchase investment properties? Can we move the existing investment properties to the LLC?

If this has been already discussed, please share the links. I searched and couldnt find any related to this topic. 

Thank you,

Yes this is 100% possible.

I assume loan availability is based on the amount of existing assets of the LLC, correct?

Curious about this as well. I know many people buy it in their own name and then transfer to the LLC. Technically triggering the due on transfer/sale clause of the loan but in reality it rarely happens.

Why not buy with LLC in the first place?

In my case buying under the LLC made the closing longer and more bureaucratic (hint, hint..this bank has the initials W.F.). Considering the extra red tape, I decided to purchase it under my name. The day after I closed I contacted my title company, completed a quick claim deed, and transferred title to my entity. It worked well for me.

To purchase under an LLC, you’ll need to contract with the seller as the LLC, get your financing as the LLC, then close as such.

Easy enough - except maybe for the funding. You’ll be paying an extra few %, and likely have a 5-10 year payoff and balloon at the end.

At some point, this obviously makes sense. But for your first few deals, the better rates a conventional mortgage offers is typically a better path than jumping right into commercial funding.

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