LLCs, Financing, and Deeds

[Andrew Peters]

Has anyone had an success in financing through a bank in the area with an LLC or being able to put the LLC on the deed at closing? Additionally, anyone suggest any banks or lending institutions that are very cooperative with investors?

[David Dachtera]

@Andrew Peters,

LLCs, S/C-Corp's, etc., being business entities, can usually only get commercial financing which works a bit differently from "traditional" financing. Usually, only commercial lenders will lend to businesses.

John Anderson doesn't like LLCs for some reason. Done right, they offer the best protection and flexibility. You do still need insurance for them, he's right about that.

That said, if you do transfer properties into an entity from your own name, remember that you are still responsible for the lender's lien. If you can find a way to do it, have the entity buy the property from you with it's own financing, if necessary, on its own credit merits. I'm told that Chase Commercial will do loans to young entities with little or no credit history with no personal guarantee under certain conditions. If can find that post again, I'll post an update here.