Loan question for purchasing rental property

[Rusty Lee Monchil]

Looking to purchase first rental property. Have LLC set up, bank wants 20%, since not using equity from personal home, but they want to loan in my personal name, not my LLC.

Question : Don't I want the loan to my LLC, so completely separate from personal life, assets ?

[Chris Seveney]

Quote from @Rusty Lee Monchil:

Looking to purchase first rental property. Have LLC set up, bank wants 20%, since not using equity from personal home, but they want to loan in my personal name, not my LLC.

Question : Don't I want the loan to my LLC, so completely separate from personal life, assets ?

You do but many banks and credit unions will not lend to a LLC or they will want a personal guarantee. If you search BP its like a running joke about the number of people who spend all this money to create these elaborate schemes to put a single family rental in a LLC. Most investors do not know how to manage the LLC and the costs for setting up and maintaining a LLC when all you needed was an insurance policy to cover you could have been done.

You can get a DSCR loan but you will most likely pay higher interest rate.