Financing via LLC or Personal - First purchase

[Daniella Steinberg]

Hi - wondering the pros and cons of payment terms for a first purchase. 

Interest rates are so low, that financing is ideal. But how does one gain financing for an LLC property for the first purchase? If I buy with cash, then refi after closing, will I pay closing costs twice? If I have to use my personal financials to obtain the mortgage, when is it best to transfer it to the LLC?

Thank you

[Erica Larence-Penna]

@Daniella Steinberg I typically suggest purchasing a property in your name individually for the first few. Use up the conventional loans you are allowed. Also, a lot of people think that holding property in an LLC means they will never be held liable, which simply isn't true. Personal liabilities may be limited, but are not nonexistent. You're also required to file minimum taxes, pay for annual filings with the state, etc. These costs can eat away at profits. You might also have trouble refinancing in the future.

I personally think it's best to purchase your first few properties in your individual name.