Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago on . Most recent reply

User Stats

6
Posts
3
Votes
Manny Rivas
  • San Diego, CA
3
Votes |
6
Posts

Multi member LLC credit check

Manny Rivas
  • San Diego, CA
Posted

I have great credit although my business partner does not. We want to invest in a few properties together using both of our money down but he does not have good credit. I'm using LegalZoom to form a Multi Member LLC for the purchase of the properties. Will his credit affect the process of getting a commercial loan for a property or can they solely use my credit? He's working on taking care of his but it's not going to happen overnight.

Will this negatively affect business credit card applications? We probably will need to apply for credit as well for remodels.

Most Popular Reply

User Stats

1,146
Posts
646
Votes
Nick Belsky
  • Residential and Commercial Broker
646
Votes |
1,146
Posts
Nick Belsky
  • Residential and Commercial Broker
Replied

@Manny Rivas

This really comes down to the lender. For DSCR and commercial lenders, you can often adjust the operating agreement in various ways to make one member the guarantor where only that member's credit is pulled. Usually, by pushing the ownership percentage down below 20%, or so, will allow that member to contribute capital or experience, but not credit. Some lenders are 51% + can be the only guarantor. Some require all members to guarantee...

Working with a mortgage broker is probably your best bet to save yourself some time on this.  Lots of ins and outs around this and brokers know their resources well enough to know who to work with your scenario.

Cheers!

business profile image
Belsky Mortgage, LLC
5.0 stars
15 Reviews

Loading replies...