I'm looking for some advice on obtaining a business loan using the rental properties in an LLC as collateral. Is there a loan program for LLCs to get a 70%+ LTV ratio? I've heard of personal loans that do this but I'm new to the LLC side of investing. Thank you!
Trying to understand what you are getting at here.
- Most LLCs don't borrow money on their own. You as the owner will get underwritten for the loan and it's just titled in the LLC.
- You might also be confused on loan products. There are fannie/freddie loans which is where you get most homeowner loans, and where people talk about this 10 loan cap for rentals. But if you are titling it in an LLC, you'll need to go to commercial loan department of a bank, and usually the local banks are where you go for this.
Loans close to LLC for single family home investing can be up to 80% LTV for purchase and up to 75% LTV for cash-out refinance. New LLC has no problem.
If you are referring to pulling equity out of your rental properties, you can do this up to 80% in Texas, by law. Many of the lenders I work with will do 75-80% LTV on cash outs under an LLC. The only personal loans that I know of where you can be in an LLC and not commercial are DSCR, Asset Depletion, and Bank Statement loans. There are commercial versions of these as well.
You appear to be in Texas. Let's hop on a call and talk through exactly what you are looking for. I can help you out or at least guide you on where to go.
@Christopher Bowling you can get a 70-75% LTV against the portfolio to the LLC -- the LLC will be the borrower on the loan but the members/owners of the LLC will give personal guarantees on/for the loan. That would mean the owners/members would need to have their credit check. You can get a 30 year fixed loan @ 4.375% - 4.875% depending on property values, market, DSCR, and your credit score.