How to Finance a LLC

[Derek Olmschenk]

Hello BP community! I'm new to the real estate game and just trying to figure out the beginning steps before I can make an offer. I recently talked to a lender about financing a rental property that I would own using a LLC. He responded by saying that if it was going to be owned by a LLC, I would need to apply for a commercial loan. He explained that commercial loans come with slightly higher interest rates and balloon payments whereas conventional mortgages offer great rates and no balloon payment. Is this normal? If so, are there ways to work around it?

Thanks for the help!