Investing in Real Estate with an LLC: What You Need to Know About Financing

Most experienced real estate investors hold their properties inside an LLC for liability protection and tax purposes. But financing a property through an LLC is different from financing it personally — and many investors don't realize this until they're already under contract.

Why Investors Use LLCs

An LLC separates your personal assets from your investment properties. If something goes wrong with a property — a lawsuit, a liability claim — your personal assets are generally protected. LLCs also offer flexible tax treatment and make it easier to manage multiple properties and partners.

Can an LLC Get a Mortgage?

Yes — but not through conventional channels. Fannie Mae and Freddie Mac backed loans require the borrower to be an individual, not an entity. This is one of the main reasons DSCR loans are so popular with investors — they're specifically designed to lend to LLCs, corporations, and other business entities.

What Lenders Look for When Lending to an LLC

The LLC must be properly formed and in good standing. Most lenders require the LLC to have an EIN. Some lenders want to see the LLC operating agreement. The principals of the LLC will typically need to personally guarantee the loan unless it is a non-recourse loan.

Do You Need a Seasoned LLC?

Some lenders require the LLC to have been formed for a certain period of time — typically 90 days to 1 year. Others will lend to newly formed LLCs with no seasoning requirement. At Jordan Lev Mortgage we work with lenders who are flexible on LLC seasoning.

Single Member vs Multi-Member LLCs

Both can qualify for investment property financing. Multi-member LLCs may require all members to sign on the loan. The structure of your LLC can affect which loan programs you qualify for so it's worth discussing with your lender before you sign any contracts.

How Jordan Lev Mortgage Can Help

We specialize in lending to LLCs and other business entities for investment property purchases nationwide. Whether you have an existing LLC or are forming one for your first purchase, we'll match you with the right loan program. Submit your deal at jlwmtg.com or call 717-586-5144.