Updated almost 8 years ago on . Most recent reply
Equity partners and lenders
Hi, I'm working on a flip project and brought on a few friends as equity investors and will be taking ownership of the property in an LLC. I'm working with a hard money lender who already approved me but will need to run credit for every member on the LLC and would require a personal guarantee from each member owning 20% or higher. The credit check is annoying but won't necessarily be a problem. The personal guarantee might be an issue however.
Are there other ways of structuring partnerships with my investors so we can avoid this hassle? Mainly, how do I work with lenders like this while reducing friction for my investors?