Mortage with a new LLC Company

[RUDY351]

Me and a friend are going to buy a condo at the shore as a rental property. What adivce can you give us on this? In talking to my accountant he said we need to form an LLC Company which will make tax time easier for spliting up any losses or gains. But I also heard that trying to get a mortgage as a first time new LLC company on a single condo could be difficult, usually need to buy a quadplex. Any help would be greatly appreciated.

Rudy

[REOCITYcom]

This would depend on which state you live, the problem is investment properties require a commerical loan with higher interest rates than a owner occupied loan (residential loan). They might want up to 20% down, forming credit with a llc will initially be based off of both of your credits( you will want FEIN to form business credit), and whoever has lower fico will determine what apr you will pay. Be careful when doing business with your friends/family, though in theory it sounds nice, you must decide whether or not it is worth potentially falling out with your friend over a business deal. Business is stressful and can show a different side to some ones character that you didnt know was there. I would have third party attorney work out details such as what happens when/if one partner defaults on loan commitment etc. This is only my opinion, Good luck and happy investing.