Financing Question - benefit of LLC

[Brad Jones]

Hi,

I have some cash that I'd like to invest on a commercial property. Eg. I saw a $230k office condo that is leased at 10% cap. Would like to get advice from the experts regarding financing and how to reduce my liability if anything goes south (god forbid). Is it possible to say open an LLC, then pay 20% down and bank loan 80% to the llc. When a credit check is done, will the 80% loan show against my me and am I personally liable for the loan or the LLC?

Thanks,

Brad

[Michael Le]

You will have to be guarantor for the LLC. Your bank won't loan solely to an LLC you spun up for $500, a week before applying. And at that price point, it will be a recourse loan so there will be liability involved.