Personal Guarantees and a new LLC Question..

[Aaron Ehrlich]

Hi,
My business partner and I formed our LLC in June 2020. We have 2 SFHs under the LLC, both with commercial mortgages that are personally guaranteed by my partner and I due to our LLC being 5 months old. We have found a 3rd SFH that meets our criteria for purchasing. However, my partner is also trying to find a personal residence. He asked his mortgage broker and a personal guarantee on another property will count as debt and against his ability to finance his personal residence. I have no debt besides my personal residence mortgage (and our personal guarantees).

I'm curious as to what options we have with this property. Here's what I can think of...

1. I could purchase this property under my own name and quit claim it to the LLC. How does this work? What are the risks for me with this option?

2. 100% cash purchase

3. Send the deal to someone who is in prime position to purchase and ask for some sort of finder's fee?

If you were in my position what would you do? Are there any other ways to make a scenario like this profitable? 

Thanks for your thoughts!

[Keyonte Summers]

1. The risk is that the lender calls yours note due. Be up-front from the beginning ask the lender is there any issues if you transfer the property to the LLC for protection purposes if they say yes get it in writing. If they say you cant make sure you have insurance and an umbrella policy.

2. You can do a cash purchase and delayed financing not sure if it applies to commercial loans but wth ask the lender. Or get it in your personal name. 

3. If you are starting out and this deal can be a home-run keep it and find a way to make it work. 

The only issue I see is that you don't want to carry the debt in your personal name. I would purchase it myself and maybe refi it in LLC when you partner is done searching for a primary. If you are sure that you two can support this short term hurdle isn't an issue.