All Forum Posts by: Mark Swim

Buying under an LLC shouldn't be any more difficult that buying it under your name. The bank will require you to sign a personal guarantee even though the loan is in the name of the LLC, so the review that already did of your financials should still be valid.

As @Adam Guiffrida pointed out above, an LLC provides you with personal liability protection and tax benefits. For example, if someone were to get hurt on the property your personal assets would be more protected form a lawsuit than if you own it in your name. From the tax side, you can deduct all of the LLC's expenses on your personal tax return (i.e. interest, maintenance, advertising, depreciation, etc.).

My first deal was a commercial mixed use space (retail on the first floor with two apartments above).  I had more luck financing it through a local credit union due to the smaller size of the loan (<$200K).  They were much easier to work with than the big banks.  They required me to submit a personal financial statement and sign a personal guarantee.  I ended up getting a loan with 25% down, 5 year term amortized over 20 years.  I didn't find the process to be any more onerous than applying for a residential loan.  I would suggest sitting down with a local banker and bounce your questions off of them.

Are you planning to manage the property yourself?  If not, make sure to check with property management companies in the area, especially if it is a popular destination.  My wife and I were looking at purchasing a condo on Mackinac Island, MI last summer.  We go there for a few days each year and thought that we might be able to find something that we could rent out, but also have for personal use.  We were hoping to at least break even but the management fees were 50%!  Needless to say, we couldn't find a deal good enough to support that kind of expense.

Welcome, @Corey Reyment! I'm in the Green Bay area, also and invest in the commercial space. We have a local REIA run by Jeff Cichocki that you could check out to get more information on the local market and network with other investors. We meet the 1st and 3rd Wednesday of the month. Here's the web site...https://greenbayreia.com. Good luck in your new adventure!

Hi Everyone,

My name is Mark Swim and I've recently joined BiggerPockets.  I've checked out the site many times, but just recently signed up.  By day I'm a mechanical engineer, but my real passion lies in real estate.  Along with being an engineer I also have an MBA, so I love analyzing the numbers on potential investments.  I started investing in commercial real estate in 2015 and have only done one deal, so far.  I currently own a mixed-use building in Green Bay that consists of a retail space on the ground floor and two apartments upstairs.

I am looking to expand further into commercial properties, such as multi-tenant retail, mixed use and multi-tenant apartment buildings.  I am definitely a buy and hold type of investor who is seeking long-term cash flow from my deals.

I am looking forward to making new connections and learn a lot from all of the experience of the BiggerPockets members.