💼 REITs or LLCs? A Lender’s View of Real Estate Investment Structures 🔎

🧾 Commercial Financing 101: Choosing Between LLC and REIT Structures 🧠

May 05, 2025•2 min read

🧾 Commercial Financing 101: Choosing Between LLC and REIT Structures 🧠

💼 REITs or LLCs? A Lender’s View of Real Estate Investment Structures 🔎

💸 LLC vs. REIT: What’s the Best Investment Structure for Financing Real Estate?

At Medallion Mortgage, we work with business owners, developers, and real estate investors across the U.S. who are navigating one major decision: should I finance this property through an LLC or buy into a REIT?

The answer can impact your financing options, tax liability, and long-term return.

🏦 LLC Financing Insights

If you're purchasing or refinancing under an LLC, you’re treated as a direct real estate owner. This gives you access to tailored financing:

DSCR loans for investment properties
Bank statement loans for self-employed borrowers
Commercial bridge loans for value-add projects
Easier execution for 1031 exchanges

But lenders will underwrite the LLC structure carefully. Be prepared with an operating agreement, business financials, and a solid asset plan.

🏛️ REIT Investment & Lending

REITs are typically financed at a corporate or institutional level. If you’re investing in a REIT, you may not be applying for a loan—you're buying shares. However, for developers looking to form a REIT or raise capital through one, the conversation shifts to syndication, SEC regulations, and large-scale financing tools like:

Non-recourse loans
CMBS financing
Private equity lending

REITs often offer passive access to professionally managed properties, but you trade control for liquidity and scale.

💼 So What’s Right for You?

Use an LLC if you:

Want control
Plan to hold and operate a commercial property
Need flexible financing or refinance tools

Consider a REIT if you:

Want passive income and diversification
Are raising investor capital for a larger portfolio
Don’t want to be hands-on with property management

At Medallion Mortgage, we help structure the deal—and the loan—for maximum return and flexibility.

📩 Reach out for a consultation at BillRappOnline.com or Medallion Mortgage.

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: • Fixed-rate mortgages: Offering stability with predictable monthly payments. • Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. • FHA loans: Making homeownership accessible with lower down payments. • VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: • Purchase loans: Financing the acquisition of new buildings or land. • Construction loans: Facilitating the development of your project. • Refinance loans: Restructuring your existing mortgage for better terms. • SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: • Expertise: Our brokers have a deep understanding of both residential and commercial lending. • Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. • Streamlined Process: We handle the paperwork, keeping you informed every step of the way. • Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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