Getting loans under an LLC

[Jake Arnold]

I currently own a Duplex zoned for students, it's in my name. I'd like to build a portfolio but I plan on forming an LLC. Thoughts on that?

Second I've hear people say it's hard to get financing for a mortgage through an LLC. How true is that?

Third how would you do a flip through an LLC?

I know those are kind of broad questions but I need some opinions on how to start. Thank you!!!!!!!!!

[David M.]

@Jake Arnold

Legal entities such as LLC's are not eligible for conforming residential loans. That's why so many people shy away from doing it more properly. Thus, you must use commercial lending.

In my layman's opinion, you shouldn't buy a property personally and deed to your LLC. I've posted on this constantly and nobody has rebutted. Causes too much potential damage to your corporate veil.

If you want the liability limitations of the LLC, the LLC has to own/operate everything in total. There will be a cost to this, but that's the cost of the extra protection you are trying to build up.

I hope this helps. Good luck.