LLC on rental property interfering with line of credit

[Dan Nelson]

I have a rental property in an LLC in Chicago all the banks I have worked with do not want to give me a line of credit while it is under my LLC. Have others had this problem and do you have any advice?

[Scott Smith]

It can be pretty tough to find a good lender who works directly with LLCs, and even when you find one your interest rates will be a bit higher. To retain good financing and also hold on to the lability protection of the LLC you can purchase in your own name, then place the property into a land trust, assigning the LLC as the beneficiary. You can still have the liability protection and the transfer into a land trust doesn't raise the same red flags as a direct transfer as the transfer to an LLc would. Check out this article for more.