Best to buy first rental property with an LLC or not?

7 Replies

Go ahead and focus on buying the property. There's no big reason to have an LLC if its just a few properties. Getting a property closed, up and running, is vastly more important then to get an LLC. Buy in your own name and eventually transfer it to an LLC.

@Nick Sheveland Thank you! I appreciate the help! One last question, is a bank or a mortgage lender typically better for purchasing an investment property? I already own a home, which I live in and purchased through a mortgage lender. Perhaps just shopping around may be the answer but was curious if there was a trend you noticed?

@Maurice Blackledge I honestly don't have a solid answer on that one. Personally, I think private money is the best way to go then refi a year or so later and you can pay off your private lender but as for a bank, shopping around may be your best bet. Look around your town for smaller banks and credit unions. They tend to be more investor friendly in most cases. Figure out what type of loan you want to go with be it FHA, 203k, etc.. and ask those banks what type of loans they offer. Also tell them your plans and ask what type of loan they think would serve you best provided your plan. I have yet do buy a property but I have spent 3-5 hours a day everyday this year educating myself on REI while saving DP money and waiting for my lease to end. So that being said take everything I say with a grain of salt haha.

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