I spoke to a local community bank officer to get a loan under my name . He said they will lend only to LLC under commercial loan to fund even a SFR or a Condo ?? I thought they prefer to loan to individuals instead to LLC ? Any thoughts ??
That is kind of wacky, I wonder if it is avoid Fed scrutiny?
Small banks and credit unions make their own rules. I'm looking to get a portfolio loan to purchase property in an entity, so that's good news for me. Did you ask them why they're only lending to LLC's on commercial loans?
@Chadi D. that is odd. Most banks I have spoke with are the opposite - they will only lend to individuals. Out of curiosity, what bank is this?
Actually two of them here in West Palm Beach .
One is 1st national bank and the other is Palm Beach Community Bank .
Maybe it is the way here in Palm Beach County .
Anyways this is even better for me so I am going with them that route .
They are offering around 5.5 % interest . Not the best but it is a commercial loan !!
@Lance Lvovsky FYI above
As a lender, we typically like to see a bankruptcy remote single property entity as the holding entity for the property. The reason is, it will be harder for any other properties to drag down this property if you have financial difficulty.
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