Ok so as an owner of an LLC having a 25% down payment for a conventional loan will I be able to obtain a long term loan for a rental? Some investors I've spoken with say no property should be under your personal name. So how will an LLC qualify or do all your rentals need to be under your person loan from a bank?
You will have to personally guarantee loans until the LLC has enough assets that those could be attached in the event of a default. I don't use an LLC - I just have really good insurance.
@Preston Duron you are right in saying that it will be very difficult to get a loan in the name of a new LLC - if you managed to do it, it would have to be a commercial loan.
I recommend putting the properties in an LLC rather than the umbrella insurance route - if you have time, listen to the podcast with @Brandon Hall and you will learn quickly why.
As for the LLC, it is possible to transfer title to the LLC upon closing (or later) and the loan remain in your name. Most people will tell you that this is risky because of the 'due on sale" clause but I have yet to hear of a time where a lender actually called the loan. Also, it is possible that lenders will allow the transfer on title, I know this because my lender allows it. They approve me for the loan and I transfer title to the LLC upon closing.
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