Conventional financing using the LLC?

[Shane Moss]

I am looking to purchase my second rental property soon; however, this time I will need financing. My question is first, will my LLC have a problem getting financed since it doesn't really have a credit history? I do have a business credit card under the LLC's name, but I've only had it and the LLC since May of this year. Second, is it necessary to get financing through the LLC rather than myself because of potential future lawsuit issues?

Thanks for the help!

[Bill Walston]

Hi Shane! If you purchase the property in the name of the LLC, then the financing should be in the name of the LLC as well. This shouldn't be a problem, though you will most likely need to personally guarantee the loan.