Hello:
We have a property in a land trust in Illinois. The beneficiary of the land trust is an LLC. We are trying to get a loan. I own the LLC. I am having a hard time finding a lender that will give me a fixed rate, fixed term loan (15 to 30 year reange) in the name of the LLC.
Everyone I have talked (banks and mortgage brokers) wants to do one of two things:
- transfer the deed to me personally, take the loan in the personal name and then transfer back to a land trust OR
- give me a commercial RE balloon (up to 5 years ballon).
I don’t like either option. I have the LLC to limit my liability from the tenants (in addition to the insurance policy we have in place). And, I don’t want my personal name showing in the chaing of title. If we get sued (for whatever reason) the most exposure I want to have is that property. Plus, I have other properties in the pipeline that I would like to finance this way too.
And, I don’t want the balloon since I think interest rates are still historically low and want to lock in at this level to be sure of my expenses going forward.
I will use the money to improve the property itself. Property worth about 280k. No other loans on it. Need 100 to 150 k.
Can you recommend a better way.
Lou