All Forum Posts by: Derek Olmschenk

I felt like it was the only option that I know of for my plan. The goal is to work with my parents for my first few rental properties (they will supply more of the down payments and I will be in charge of finding and managing the properties). The LLC would allow me to access the down payments without having my parents pay gift tax, keep the finances of the property separate from any of our personal finances, and ultimately reduce our liability. Let me know if there is another option to get around some of these hurdles. If it is just me investing into the rental property, then I could see where an LLC might not be necessary. However, I could probably only do 5% of the down payment of most places. Thanks for the help!

Hello BP community! I am just starting out my real estate investing journey and need help with recommendations for financing. My plan is to use a LLC to own a rental property. From my understanding (and please correct me if I'm wrong, I appreciate any help) I need to get a commercial loan since I'm using a LLC. Please give me any recommendations for mortgage lenders in Minnesota that could help me out with this. Thanks!

Hello BP community! I'm new to the real estate game and just trying to figure out the beginning steps before I can make an offer. I recently talked to a lender about financing a rental property that I would own using a LLC. He responded by saying that if it was going to be owned by a LLC, I would need to apply for a commercial loan. He explained that commercial loans come with slightly higher interest rates and balloon payments whereas conventional mortgages offer great rates and no balloon payment. Is this normal? If so, are there ways to work around it?

Thanks for the help!