Need Properties in LLC for Commercial/Portfolio Loan?

[Zach Taylor]

I am getting to the point where I will have to move from conventional loan products to commercial/portfolio loan products because of strict conventional guidelines and underwriting. My properties are SFR's, duplexes, and triplexes. For those with experience in these loan products, do all my properties need to be under the ownership of an LLC or other business entity to qualify for such loans? Or could the properties remain under my name? I am reaching out to lenders, but wanted to see about others' experiences. Thanks in advance.

[Robin Simon]

I believe you are referring to switching to DSCR Loans. Lenders differ, but usually it would still be OK to do loans as an individual (LLC or entity not necessary).

For us, we lend DSCR to either individuals or entities in most states, but a handful we do in fact require it to be an LLC or other corporate entity

Fully Eligible States (Lend to Individuals or Entities)

• AL, AK, AR, AZ, CA, CO, CT, DE, DC, HI, ID, IL, IN, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NJ, NM, NY, NC, ND, OH, OK, PA, SC, SD, TN, TX, VT, WA, WV, WI, WY

Partially Eligible States (Lend to Entities Only)

• GA, FL, IA, MS, MT, RI, VA