Buying Real Estate under LLC or your name

[Rafael Ortega]

Hi  Team,

I have two properties under contract ( single family homes). Should I buy them under my business name LLC or just under my name? these will be my very first rental properties. I will use hard money lender at first as they need rehab, then refinancing with the bank. How's refinancing would work when the property is under LLC Vs your name?.

[Jason Wray]

Rafael,

After the hard money loan I would suggest closing them under your LLC using a DSCR loan or portfolio program. These two programs allow for an LLC refinance from hard money with no due on sale clause issues. Rates on DSCR are lower and they offer ARM and I/O interest only options.

DSCR is going to want to make sure the loan amounts are over $100K in most cases. Feel free to email me if you have any specific questions. I enjoy helping and talking REI!