Purchasing Single Family Properties Through LLC’s?

[David White]

Hello all. I've heard it said by many that most banks will not lend to LLC's when trying to buy single family homes. Are there any ways to navigate this?

[Annchen Knodt]

Hi @David White, it actually shouldn't be too hard to find a bank that will lend to an LLC on a SFH if you call around enough, but you'll find that the rate and terms will be less favorable than for a conventional loan to an individual (usually one percent or so higher interest rate and a 20 or 25 year amortization period rather than 30). For that reason lots of people will purchase in their personal name and then transfer the deed over to the LLC once all the financing is in place. Of course you'd want to talk to your attorney and lender before going that route!