Is it true I can get a low rate mortgage with a LLC/trust combo?

[Vidit S.]

Hi - I have saved up some cash aside and I am looking to break through this year in rental property investing for long term buy and hold for cash flow. My main aim is to have a proper legal structure for asset protection(from tenant lawsuits etc) in place for my rental investments knowing well that it comes with higher mortgage rates if I buy properties under a legal entity like an LLC.

But while I was shopping around for lawyers, one lawyer from Anderson Advisors said that I can get a low rate conventional mortgage(like i was buying a second home or an investment property) from the lenders with a LLC instead of a commercial loan if I set up a land trust with the LLC as a beneficiary and telling the banks that I am putting the property in a land trust for Estate Planning purposes right off the bat.

I wanted to validate this if this is indeed true and if anyone has successfully done this before because I searched the forums and I could not find anything like this. 

Really appreciate any input on it. 

[Mike S.]

You will buy the property under your own name. After closing you will deed the property to a land trust where you are still the beneficiary. The due on sale clause won't be triggered thanks to the Garn St Germain act. You will then assign the beneficial interest to your LLC.

I have done it before without any issue.