When to start LLC?

[Mary Ann]

I'm looking to buy first prop within the next 3-6 months - I'm looking now. Is it too early to open an LLC? I want to open one to get a business line of credit for purchases. Any info is appreciated. Thanks!

[Darren Sager]

@Mary Ann It will be far more difficult to purchase your property from the LLC as finding lenders who'll lend to it are few and far between. The methodology that most use is purchasing the property in your name then transferring it to the LLC. This may cause the mortgage company to call the loan (which means they want payment in full) however in most cases this rarely happens. My friend @Brandon Turner can attest to that.

It's not to say that you can't get financing in the LLC, it's just that it's more difficult and the rate (and possibly the term) may not be as favorable as if you purchased the property in your own name.