Investor · Barrington, NH · Member since 2015 · 11 posts · 3 votes
what are the chances of using a multiple partner llc that buys a piece of property to fund the down payment instead of a private loan that the lender won't count as down payment.
here's what I am thinking.
the LLC would own the single property and could be structured so that the private loan was a buy in percentage of the llc but once purchased switch over to a buyout procedure where by the investor gets bought out over a set period of time.
what are the odds this gets through underwriting.
I have a private unsecured loan for 15% but need to fund the other 15% which the seller is willing to do at 0% but I know it will get kicked back by the lender as not counting towards the 30% down required.
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
8y
Its either equity or debt, you can't structure LLC members to loan money within the LLC, its not secured by the collateral. The bank has first position, so your funds either come in a equity (all risk) or debt (right of repayment)
Real Estate Technology · San Francisco, CA · Member since 2016 · 262 posts · 265 votes
8y
@Robert Churchill I've seen investors take a personal loan (not secured by the property) to contribute to a multiple member LLC as equity. Most local banks only care that the funds provided as equity are not secured by the asset.