How to get a loan within an LLC?

[Julie Flynn]

Hi! My husband and I are looking to make our first investment purchase-a modest house for long term rental. Now that Fannie Mae and Freddie Mac no longer allow a mortgage on a purchase within an LLC, how can we get a conventional loan? Or is a commercial lender our only option? We are quite concerned with shielding ourselves from liability, and we read that if we purchase a property in our name and then transfer it to an LLC, a judge or court could come after us because they look back 2 years at all people/entitites to see who to sue. We are looking at purchasing in OKC.

[Pete Bhanshali]

Hello Julie,

Since you are just starting, why not go with conventional loan and put it under your name, you will get great interest rate. Make sure to get Umbrella insurance. Plus you will have all the same benefits from deductions perspective as LLC. I just don't see a benefit in LLC when you are starting out, unless it''s 4+ multiplex then you will have no choice but to get a commercial loan.

In a lawsuit good lawyer will find a way to go through LLC without any issues, your best protection is insurance and umbrella policy.

.Just me .02 cents.