Best type of banks to borrow from?

[Jamie McKenna]

I'm new to REI and am wondering what's the best option for obtaining financing. I have a couple partners and we were thinking of talking with local banks in hopes of building a working relationship over the years with a lender we might see at the grocery store. But are there certain banks that might be more able to help us grow...larger banks that would see us as a smaller risk, an online lender that just needs to see that we make payments on time, etc. Any thoughts would be great!

[Jon Holdman]

@Kyle Doney yes, you certainly can do that.  It does violate the due on sale clause in your mortgages, though.  Appears to be low risk at the moment.  That could change, especially if interest rates rise.

The reason for holding properties in an LLC is asset protection. Umbrella liability insurance is another piece of your asset protection strategy. This is a good topic to discuss with an attorney, if you have significant assets and are concerned about potential lawsuits.