We want to get some opinions and advices from the community for
our situation.

We acquired 6 $100,000 properties with residential loans, and
these properties have apprecipiated over 50% in 3 years.
Their LTVs are around 50%. All of them has around $50-$100
positive cash flow. The mortage rates are the property are
30 years fixed at 6%.

Everytime we want to get a loan for a new rental property, we
were asked to provide information on all our rentals. And we
were told that there is extra restriction. This complicates
the process. So we are considering to setup a LLC to owe and
mortage the properties.

Questions:

a) In average, how much more, in term of percentage, do you pay
for a commerical loan?
Bank will consider non-seasoned LLCs?
c) Should I talk a commerical loan broker or bank? How do they
different in term of rate?
d) Should I get a big loan that covers all properties or should I get
individual commerical loans for each property?
e) Is this typical for other property investors to transfer their
property from a residential loan to a commerical loan when
they have more properties?

thanks in advance for your comments

a) In average, how much more, in term of percentage, do you pay
for a commerical loan?

It depends on the size of the loan. For small loans under $500,000 expect to pay about .75% higher. Fo larger loans over $1,000,000 you can get into the mid fives. There also is the issue of amortization. Most banks and commercial lenders, at least in my area, will not go out further than 20 years amortization. Amortizations out to 30 years are avaialble for properties where the loan is greater than $500,000.

Bank will consider non-seasoned LLCs?

You will be asked to provide a personal guarantee in most cases so the LLC does not need to be seasoned, have assets or established credit.

c) Should I talk a commerical loan broker or bank? How do they
different in term of rate?

There will be little difference in rates for loans under $500,000. Make sure you talk to a few of each.

d) Should I get a big loan that covers all properties or should I get
individual commerical loans for each property?

Depends on whether you want the flexibility to sell off individual properties without paying off the enitre existing mortgage or working out the breakout from the blanket loan. With regard to rates you will not see much of an advantage because blanket loans are not priced as if it were a single property. For example, you would not get the much lower rates you would on a single $500,000 property by combining 5 $100,000 properties in one blanket loan.

e) Is this typical for other property investors to transfer their
property from a residential loan to a commerical loan when
they have more properties?

Yes and no. As they build up their portfolios, many investors do look to begin putting properties in a corp name. Depending on where you live you may incur real estate transfer tax by moving the properties from your personal name to a corp.