Investment property in a llc

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How can I get a bank to lend to a llc the property I’m looking at is about $50000. Do banks even finance that low of a price. Property located in Harrisburg PA, and it’s already cash flowing.

Originally posted by @Akeem Moreno :

How can I get a bank to lend to a llc the property I’m looking at is about $50000. Do banks even finance that low of a price. Property located in Harrisburg PA, and it’s already cash flowing.

 If you're looking to use residential financing you'll need to keep the property in your personal name.

Hey Akeem,

The best strategy I have seen investors who are working with smaller properties and looking for funding into an LLC is actually using a strategy with a Land Trust. This article explains it in more detail, but you essentially purchase the property into your personal name and then transfer it into the Land Trust - this is a protected transfer because it is an Inter Vivos Trust (an estate planning tool) and protected by the St Germain Act. Once you have transferred the property into the Land Trust you would assign yourself as the trustee (manager) and the LLC as the beneficiary. 

The strategy grants you the best financing options available in your personal name while also granting you the liability protection of the LLC. There are more benefits to the Land Trust beyond just financing which include introducing anonymity to ownership and the fact that it ties in with any future estate planning easily.