Financing properties held in an LLC

[Paul Sanders]

Hi BiggerPockets community,

I own a property in Brian Head, Utah, currently used for short-term rentals. I'm in the process of forming an LLC to hold the property and eventually plan to structure fractional ownership within that LLC.

I’m looking for recommendations for lenders who:

• Are comfortable financing properties held in an LLC.
• Understand or can accommodate long-term plans for fractional ownership.
• Ideally have experience with short-term rental properties in resort markets like Brian Head.

If you’ve worked with a lender who fits this profile or have insights on what lenders look for in these scenarios, I’d really appreciate your advice.

Thanks in advance for your help!

[Erik Estrada]

Quote from @Paul Sanders:

Hi BiggerPockets community,

I own a property in Brian Head, Utah, currently used for short-term rentals. I'm in the process of forming an LLC to hold the property and eventually plan to structure fractional ownership within that LLC.

I’m looking for recommendations for lenders who:

• Are comfortable financing properties held in an LLC.
• Understand or can accommodate long-term plans for fractional ownership.
• Ideally have experience with short-term rental properties in resort markets like Brian Head.

If you’ve worked with a lender who fits this profile or have insights on what lenders look for in these scenarios, I’d really appreciate your advice.

Thanks in advance for your help!

I think the tricky part will be the "fractional ownership". Are there multiple members in the LLC? Most DSCR lenders will allow up to 4 members only. Additionally, there will need to be a personal guarantee on the loan. This will require at least 21% ownership for a natural person.