30 year fixed mortgage to LLCs. Am I trying to find a Unicorn?!!

[Kris V.]

Hello BP!

Full disclosure - Newbie investor trying to find the best combination of asset protection and lending terms.

I have been talking to a few lenders in the Minneapolis, Minnesota area to line up my finances before I buy my first Buy and Hold property (end of Summer /early Fall). What I have been finding is that lenders will do loans in LLC names but they are commercial loans. 25 year loan term, 5 year reset/balloon. So far I have talked to 4 different lenders and everyone says the same thing.

What I assumed(perhaps a wrong one!) is that I could have 30 year fixed mortgage in a LLC name as long as I backup the loan in my personal name.

The reason for LLC was asset protection, but with 5 year resets and being at the mercy of a lender to hike the rate that is too much of a risk that I am not willing to take, not to mention the higher rates and closing fees associated (especially for buy and hold long term rentals + in the fed's decision to start raising rates).

So, to summarize here are the two options that I can come up with

Option 1 - If you want asset protection you can buy in an LLC(for each property) BUT can only get commercial loans that reset every 5/10 years with 20-25 year loan term.

Option 2 - Buy in your name, get 30 year fixed mortgages. Load up on Liability insurance.

Here are my questions

1. What other options exist?
2. If you go with Option 2(in your name), would the bank stop at 10 properties?
3. How do you go beyond 10 or 4 properties? Go to Option 1(Commercial /Portfolio loans with balloon resets)?
4. If you go with Option 2, would I better to buy properties in my name first max that out and then start to buy properties in my wife's name (as we both have W2 incomes and will keep the full time jobs). 
5. Option 2, I would not start buying properties as Joint Owners?

Look forward to the feedback from the community!

[Jeff B.]

The LLC does add complications. My 25yr arm commercial on a 6-plex is looking to be a rare breed too.

The legal entity can come-n-go, but the real person is here for the 'duration' and does get better consideration. Working with the local business bank as-a-person goes much further than an LLC attempting the same deal.

We all went to those lectures on "asset protection" and many (including my self) took the bait.  After several years it dawned upon me  that the entity was only an extra expense and was feeding the lawyers, so I dumped the S-Corp and the junior LLCs and continued for decades w/o issues - - but that requires one to be extra viligant in keeping up with regulations AND to work well with people.