Advice on Financing 4plex

[Keith Jablonowski]

Looking to place an offer on 1st property. A 4plex. My question is related to residential financing and an LLC.

We qualify for a good 30 yr residential loan under our own name. Our intention was to purchase the property under our names and immediately transfer the deed into the LLC's name.

What I have heard from an attorney is doing the purchase this way opens us up to more personal liability.. Because the financing is coming from us personally and not through the LLC this is a crack in the veil of the corporation.

We are finding it much harder to find commercial financing since this is our first property and we do not have a track record of success.

We both have excellent credit and a good amount of cash on hand. We would like to leverage somewhat though to allow more purchasing opportunities while prices and lending rates are low.

Can anyone chime in on the risk vs reward of using the residential loan but transferring the property into an LLC?