Rental Property Financing

[Jasmine G.]

When you have a potential investment partner for a rental property, how do you typically finance the mortgage on the property that makes your LLC the owner on the title/deed and not you specially? For conventional financing, do banks typically offer mortgages to LLC+investment person? As a business owner, how would one not become "liable" for the mortgage, but the LLC? I'm having a hard time wrapping my head around conventional financing for rental property as a business owner. As I'm sure credit reports and asset review needs to be done to qualify for a mortgage, which is totally fine and all. I just need to figure out how to put the LLC on the title without tripping the "due at close" clause for conventional mortgage financing when switching ownership/title to an LLC.

[Scott Krone]

@Jasmine G. If the property is purchased by the LLC, banks can and typically do provide a mortgage to the owner (the LLC). However, the bank my required guarantees from one or both of you. Typically, they require a personal guarantee from anyone owning more than 20% of the LLC. The mortgage and note will be in the name of the LLC, and guarantees individually named. Hope and trust this answers your question.