Updated 2 months ago on . Most recent reply
DSCR as a minority partner
I have a partnership set up where I am the 49% partner and the manager of the LLC. The 51% partner wants to be 100% passive. He contributes 98% of the capital and I am doing all the work and we are sharing the profits on the deal 50-50. I am currently in contract on our first deal for a DCSR 30 year fixed, 6.99 rate at 1 point buy down with waived application and origination fees. The lender has just informed me that since I am not 50% owner of the LLC the loan would have be in my name and then have after closing execute a quit claims deed to put title in the name of the LLC, but the loan would be in my name. I do not want the loan in my personal name. My understanding was when doing a DSCR with an LLC this would not be needed. I did speak to some other lenders and they did have some DSCR products which would put the loan in the LLC's name even if I am only a 25% partner. However then I have to start the whole process over again. and see if the new lender would waive the same fees. The other option is restructuring the LLC to a 50-50 partnership, which my partner is hesitant to do.
Any advice is appreciated.