when looking for a commercial mortgage for rental property, what is the benefit of having the property an LLC?

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i am attempting to locate a better loan rate and or added years in order to lower the payments overall. an llc was mentioned saying i would be better off in locating my commercial loan rates. help !!!!!

1 Comment
  1. Reply
    Jason
    May 26, 2011 at 2:23 pm

    hi,

    this is what I do:

    first of all you want the property to be deeded to an LLC in general, aside from financing should you ever get sued, if its deeded to an LLC they won’t be able to come after you personally-THIS IS VERY IMPORTANT

    as for the financing: if you have an existing LLC, (open for at least 2 years) the LLC itself has a credit rating, provided it has a good credit rating, you will get a better rate, because the LLC and its rating and well as you and your rating will give the lender more security.

    ADDITIONALLY, there is a loophole, provided you don’t own an LLC that has been open for awhile, you can buy a “used LLC” that has a credit rating of its’ own, basically you assume someone elses LLC.

    I use a company called The Incorporator in new york, if you would liek their phone number feel free to send me an email and I will look it up for you.

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