LLC = Commerical Loan. So now what?

[Rebecca Styer]

Okay, I've done a lot of research and have scoured the forums, but I'm just not grasping the financing end of making deals.

My goal is to buy and hold a property to landlord.

I found an excellent deal and was ready to make an offer only to find myself going in circles with banks.

I formed an LLC months ago so that if I saw a great deal, I could pounce. I had spoken with my local bank and Wells Fargo and both confirmed that I would have to use a commerical mortgage because of the LLC but because the LLC had no credit, that I would still have to back the loan. No problem. I expected that from everything I've read.

When it came to actually making an offer I got a completely different story. Neither would work with the LLC at all and insisted that I create a personal loan. Wells Fargo ended it at that (not to mention I never spoke to a mortgage representative directly after being transferred 12 times and then stopping at a local branch) I think I just wasn't spending enough of money for them to even respect the deal.

My local bank was very kind and accommodateing but refused to give me any type of pre approval letter or document. They said that they don't do them for commerical loans! How can someone make an offer without any type of financial approval?

So I'm wondering if i'm just not a big enough investor yet to even use an LLC. I don't care about backing the loan, I just want protection against residents.

I saw folks mention they purchase property in their name and then transfer or title it to the LLC. However, there seems to be a lot of questions about how a bank would react to it and I saw no answers to those questions.

My lawyer explicity explained that my name should absolutey never go on anything in order for the LLC to truly protect me. I can't possibly follow this rule if I personally purchase the home and then deed it to the LLC can I?

I was attempting to finance 72K with a purchase price of 90K the property was a multi unit home valued at $150K. Credit isn't an issue (not that they even checked it anyway).

Am I over thinking this? Should this be something I shouldn't be worried about until later down the line? Are my deals too small?

What is a good resource to find other mortgage companies I can communicate with?

Thanks in advance.