obtaining a loan under an LLC in Florida for buy and hold

[Ross Benedict]

Hi guys. I am currently doing my homework on how to obtain a loan under an LLC for a property that I would like to buy and rent out. From what I have read on the BP forums on this topic it seems as if your best bet of achieving this is going through a smaller bank and not your typical larger national banks. Wondering if anyone in the south Florida real estate game has any suggestions on specific banks that may be more apt to work with me in achieving this. Thanks again for any input folks

[Evan Demchick]

It is a lot of what has been said but most banks I've talked with generally won't care much about it being in an LLC, as long as the personal guarantee is the same. To them, they still have the asset and you as lines of recourse. And yes, the smaller the bank the more likely they are to work with you. I would mention to them that you are looking to build a portfolio- a constant source of deals normally entices small banks.

I would think is the safer route, rather than holding the property under your name where you have liability from a number of different angles.

Likewise, if you are having trouble securing bank financing, you may want to look into a bridge loan, prove out the income for a year, and then circle back with a bank. Obviously, you don't want to have a high interest rate locked in, but if it is the only way to close on an otherwise good deal, the short term cost may be worth it. Just something to think about.