Updated over 4 years ago on . Most recent reply
LLC and non-recourse loan
I am interested in purchasing residential rental property in either Chicago or Milwaukee via an LLC. I will need financing, which brings me to my question. Does anyone have a recommendation for a lender that would provide a non-recourse loan? Would the big banks (Chase, Wells Fargo, etc) lend to an LLC with a non-recourse loan, or should I shop around with small local banks?
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#1 Multi-Family and Apartment Investing Contributor
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#1 Multi-Family and Apartment Investing Contributor
- Investor
- Santa Rosa, CA
The PG doesn't strip the limited liability nature of the LLC except as it applies to the lender's remedies if you default on the loan. If someone falls off the roof and sues, they can't go after your personal assets outside of the LLC simply because you have a personal guarantee on your financing. Besides, those risks are why you buy insurance.