LLC and getting a loan

[Tracy Munger]

Newbie here. Looking to get into multi family properties. I need some direction regarding LLC's and loans. Almost everything I read says in many cases an LLC is a good idea to protect your personal assets. However in most normal scenarios you can't get a loan under an LLC.

Assuming I don't have the funds to purchase outright or the networking to get partners and/or investors, do many people just starting out not have an LLC under their first property until after it is paid off? Is this something I really need to be concerned about?

Thank you,

Tracy

[Guifre Mora]

Originally posted by @Tracy Munger:

Newbie here. Looking to get into multi family properties. I need some direction regarding LLC's and loans. Almost everything I read says in many cases an LLC is a good idea to protect your personal assets. However in most normal scenarios you can't get a loan under an LLC.

Assuming I don't have the funds to purchase outright or the networking to get partners and/or investors, do many people just starting out not have an LLC under their first property until after it is paid off? Is this something I really need to be concerned about?

Thank you,

Tracy

Hello, Tracy welcome, 

You can get a loan under your LLC or a quick claim title to the LLC upon closing. Investor lenders will require you to have the LLC stablished for Real estate transactions. The second part is yes most investors don't take on an LLC until their second property. That's what I did when I started. Now you must know that if you need to protect personal assets it would be advisable to get an LLC in the beginning. It's a personal choice and you should consult your CPA and lawyer.