Buying a rental as LLC vs on personal mortgage? Pros and cons #realestateinvesting #rentalproperty

Lydia PatelNov 14, 20240m 58s250 viewsScore 75
Regulations & Compliance
beginner
LLC Structure
Tax Strategy
M

Summary

AI-generated

This video discusses the pros and cons of securing a mortgage for a rental property as an individual versus through an LLC. Securing a mortgage as an individual is easier due to broader access to traditional mortgages at lower interest rates, but buying the property as an individual and then transferring it to an LLC can trigger the 'due on sale' clause.

Key insights

  • Purchasing property under your name with a traditional mortgage provides access to lower interest rates and traditional mortgage options like Fannie Mae and Freddie Mac.

Mistakes to avoid

  • Avoid transferring property title into an LLC after obtaining a mortgage under your name because this could trigger the lender's 'due on sale' clause requiring you to pay off the entire mortgage balance immediately.

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial