Another DSCR Question - Better with LLC or in Personal Name

[Andrew Arthur]

Currently a W2 employee, own two properties and ready to purchase a third but my DTI will not allow it. From my understanding and research the DSCR Loan is the only way in my situation. However, is the better strategy to do it within a LLC or in my personal name?

I am leaning towards in my Personal Name because I assume I would have to personally guarantee the loan anyway and I would receive a better rate? Or do people believe that I am leaving some perks on the table by not creating an LLC, especially if I plan on purchasing more properties in the future?

[Devin Peterson]

Speaking from the perspective of an experienced DSCR broker, I love to see folks close under an LLC ( I also practice this myself) because when you go and apply for another loan it won't populate on your credit report. This means less docs and less annoying questions from the bank and makes your loan process that much better. Also, LLC adds a layer of protection of business assets if anything were to ever happen.