Buying my first rental with my LLC

[Johnder Saint louis]

My LLC is up and running and ready to go. I am super excited and so are my members. My question is, if we want to buy our first rental what is the best way to startup. Do we buy cash/or finance under the LLC entity or do we finance under our own name since the business has not yet built its own credit.

[Christopher Wraback]

Don't let the capital you have available dictate what type of investment strategy you take on. You want to assess all factors that play a part in choosing your investment strategy: risk, skill of the members (is anyone handy or know a contractor?), and reason for investing. Believe it or not, capital is actually pretty easy to raise, so if fix and flip is your go to and you don't think you have enough capital, I can connect you with hard money or private money lenders that may be able to help you purchase a better property (say, a 200k property all cash with an ARV of 550k). If rentals are the way you want to go, then capital wise you're okay, and you would just need to get a mortgage personally, then transfer it over to the LLC. Also remember you may have repair costs for a property to make it rentable, so you will have to factor that in. (Say, you need 30k down for a mortgage, but 40k for repairs to make it rentable, then you wouldn't have the capital needed for the investment).

Hope this helps and best of luck!