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Brandon Schlichter
  • Real Estate Agent
  • Circleville, OH
486
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633
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LLC or S-Corp for Rentals?

Brandon Schlichter
  • Real Estate Agent
  • Circleville, OH
Posted Aug 3 2008, 10:54

I'm sure i'm beating a dead horse here, but i'm still very puzzled.

I have no issue with finding 60-70% ARV properties in my area (I'm a RE Agent) So, i REALLY want to buy some, as i can't find enough real investors to work with me. There's a over-abundance of good properties for renting, and no one wants to deal with it locally.

I've got the available cash on hand to do it , which is good, but here's my issue :

How do I Hold the real estate in the LLC/S-Corp's name? From my understanding , most mortgage companies will use an acceleration clause or something along those lines to call the debt in full and that just won't work. I need to be able to get a mortgage for the properties, and have the LLC/S-Corp distribute the proceeds, as i will have multiple investors with the property.

I want to protect myself and the investors, as well as use it as a tax benefit as well. How do I do this ? From my understanding,there's only one or two banks in the US that will loan outright to LLCs and S-Corps, i don't have a issue with getting mortgages in my name.

Thanks!

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