Who finances LLC's?!?!

[Jai Coward]

Hello All,

I am having a really foggy time understanding the process of getting loans for my newly established LLC. There is an offer I want to consider in Memphis, 4 rental properties, asking for $55k down, $120k financed with the following terms: 30 yr, 5yr balloon, 10% interest. So, where I really need understanding is, 1) wanting a loan for the $55k, who would finance that, and why? Hard money, commercial, private money, another lender I'm unaware exists?! 2) being a newly established llc, is that an issue for "whomever" will lend, to lend to us? 3) traditionally and strategically, how are you guys utilizing each of the aforementioned lenders (just so I can better understand)? 4) are those terms reasonable, expected? 5) should I seek to get the entire $175k financed by one lender, for better terms? Thanks so much in advance!

[Jon Holdman]

Originally posted by @Clay Smith:

Originally posted by @Account Closed:

@Westin Hudnall

You forgot to say that the lender can call the note due.

Joe Gore

 @Joe Gore.....Only if you are dealing with a Federal Credit Union . If you're let's say with BB&T Absolutely not. I can't Stand dealing with ANY Federal credit Unions. Now they are trying to literally give us an 8 Million Dollar Line and we still say absolutely NOT!!!!!

Absolutely not true. Almost every loan given these days has a due on sale clause that give the lender the right (not obligation) to call the loan due if the ownership is changed. That include moving it to an LLC.

There is absolutely no such thing as a "quick claim deed".  There are "quit claim deeds" but no such thing as a "quick claim deed."