Lenders That Will Give a Mortgage to a new LLC?

[Jamie Mathieu]

I am ready to purchase my first investment property for the purpose of a buy and hold rental. Well almost...I am struggling to find a lender that will allow my newly formed LLC to hold a mortgage even with my personal guarantee. I want to title the investment property in the LLC's name. My husband and I both have great credit and have been called "golden borrowers." So, getting the loan in our names is no problem. Any insight on how this has been done in the past would be helpful.

[Ashley Pimsner]

You should be very aware that if you transfer property into an LLC that you could trigger the "due on sale " clause and have lender accelerate the loan...another issue to be concerned with is the potential transfer fees possibly levied on mortgage balance depending on your location.

I think you should look into purchasing the investment property in a land trust which not only provides anonymity, but also gets around the two issues I mentioned above. The next step is to assign the beneficial interest of the land trust into your LLC which then provides you legal protection.

Try asking lenders if they will fund the transaction in a grantor trust aka land trust and see what they say.

Also. I am not an attorney so I advise you to find one who specializes in real estate, and is familiar with land trusts and hopefully this points you in the right direction.

Maybe this link will help.

http://www.assetprotectionplanners.com/articles/real-estate-investments