Updated about 6 years ago on . Most recent reply
LLC loan without personal guarantee
Hello, I am 1 of 2 owners in a real estate LLC that holds 4 residential real estate properties that are fully paid off. Does anyone know if it is possible to obtain a mortgage loan to acquire an additional property with only myself providing a personal guarantee? I hold a 20% stake in the LLC and the partner who owns 80% does not wish to provide a personal guarantee. Thanks for any advice.
Most Popular Reply
Yes, both possible and common. Any lender should be fine with this as long as you can qualify on your own. Just remember that they will only give you partial credit for the rental income that it would generate, but full obligation for the associated liability.