Personal Loans or LLC

[Kim Frantum]

I'm a new investor preparing to purchase my first investment property soon. Eventually, I would like to place my properties into an LLC, but for now I feel like I need to purchase my first property the conventional way; get a loan through the bank. From what I've read, new LLC's are probably not going to obtain financing. Is this the way to go? Any advice or feedback is appreciated.

[Anna Beckerleg]

Most LLC's are not eligible for traditional residential mortgages. You could go with a commercial mortgage instead if you want to purchase with your LLC but that may not be the terms you want. You could always do a quit claim after you purchase to transfer ownership to your LLC but you'll want to confirm with your lender that is OK and won't contradict the wording in your mortgage agreement.