LLC Financing Question

[Trevor Hunt]

Hello everyone,

This is my first post on BP. Love the podcasts and books. I am working with a partner getting started with investing. We are operating through an LLC. We have one single family home we are renting and another we are in the process of rehabbing. We recently looked into purchasing a 4plex, but the financing killed the returns and took it from meeting our criteria to not even close. We were able to get a 20yr loan with a 4.25% rate, but still no good. I am seeing a trend when I analyze properties; because LLCs fall under commercial lending, the rates and terms take a good deal and ruin it. Besides buying everything with cash (and looking for even better deals--doing that!), is there another way?? A 15 or 20 year loan, higher interest rates, and a balloon payment tanks cash on cash returns? Am I hunting a white whale or is there something I am missing?