Obtaining a lona in the name of an LP or LLC

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

How many units does the property have.
You state tenants so I assume more than one.

There are 3 apartments. 2 of them are full. We have a signed lease and security deposit on the 3rd starting 12/1/2005.
Total Rent:
$600/mo from 1st and 2nd floor each.
$650/mo from the 3rd floor unit starting 12/1/2005.