How do lenders consider loans to LLCs?
Hi,
My friend and I are starting an LLC for real estate investing. We have seed money, but I'm unclear how bank lending to an LLC works. Does a lender look at the business plan for a particular property to decide whether to provide a loan? I have to assume that's the case given the LLC separates protects personal assets and the LLC is new. There are no assets owned by the company except for the seed money.
Right now, before the formation of the LLC, we'd like to purchase a property because we feel it's a very good deal. We can co-sign on the loan and purchase. From what I read in BP, we can quit claim the property into the LLC.
Appreciate the insight.