Updated over 6 years ago on . Most recent reply
Financing with a LLC
I just read in a blog somewhere that one downside to trying to finance properties through a LLC is that lenders don't seem to lend to them. I've always purchased rental properties in my personal then transferred them to my LLC. I'm currently working on my business's Credit to hopefully start purchasing through my LLC. I guess my question is: Has anyone had any problems with this? If so, what did you do?
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#2 General Real Estate Investing Contributor
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- Florida Panhandle/Illinois
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#2 General Real Estate Investing Contributor
- Investor
- Florida Panhandle/Illinois
There is no issue with financing through an LLC. Be aware the rates are higher (6% and up) and you will need commercial financing. The actual process is much easier provided the property cash flows. They use debt service coverage ratio to analyze. Doesn't matter if it's a sfh or multifamily. Check out small local banks in your area. You will find they are more willing to lend to small investors. The loans are typically 5-7 year balloons amortized over 20-25 years.
Good Luck.