Are you able to purchase with an LLC?

Question

Are you able to purchase a residential property with an LLC?  I've heard some people change into an llc following purchase-  Does it make a difference it it's a commercial property- are you able to purchase initially with an llc then?  Thanks!

Kyle J. · Answer

Yes, you can purchase any property in the name of a LLC.  Your loan terms for residential properties (if you're purchasing with financing) just won't be as favorable if you purchase in a LLC vs your personal name.

Ned Carey · Answer

An LLC requires a different type of loan. it is a comercial transaction, business to business. The government entities like Fanie May or Fredie Mac that buy loans from banks, were formed to help home ownership, not to help businesses. So many loan buyers in the secondary market don't buy loans to LLCs.

Soometimes the person at the bank that says "We can't finance your property if it is an LLC" doesn't even realize the guy in the office next door in the comercial loan dept does them all day long.

Generally you are going to have better luck with smaler local or regional banks than with the big monster national banks when it comes to financing an LLC.

Eric Adobo · Answer

The major problem withLLCs are the financing, or subsets of.

I'm having one whereof I post.

Henley H. · Answer

Thanks!  Is  refinance somehow different to the bank?  I remember when we did a refinance years ago with a home that was in an llc, we were required to take the home out of the llc for the refinance.  I think the bank indicated that returning it to an llc following the refinance could allow them to call the note-

Are you able to purchase with an LLC?

Most Popular Reply