I am very intrigued about the thought of using The BRRRR method to acquire rental properties. But, I don't want to own the properties under my name because I want the properties to function like a business and have business expenses that I could deduct at the end of the year. With that said, I have heard banks and most lenders don't like to give out loans to LLC's, making the refinance portion of this method very challenging.
Im curious to know if any one would be willing to share their experience about obtaining lending when buying properties under an LLC, and what, if any, personal guarantees did they request.
I'm struggling with the refinance portion in my LLC. Everything else about the BRRRR went great. Following this thread to see if you get some suggestions on whom to reach out to. My property is in Indiana.
@David Perez I've always seen a personal guarantee required regardless of where it's in an LLC. Typically you should shop around and ask for the commercial lending departments. Slightly higher rates and shorter terms, but that's how it goes with an LLC.
@David Perez & @Sean Julian this is ABSOLUTELY doable. You just aren't talking to the right lenders. How do you find the right lenders? I wrote a post on this subject you can find HERE if you like to read it. Basically, if you know the product you need but just need it in a specific state try posting in that state forum. Bigger Pockets has some great state forums and usually there are good locals that monitor those. Also, try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.
@Andrew Postell thank you for this information.