Financing for new LLC

[Jonathan McGarrity]

Hi all,

I am new to real estate and will be forming an LLC with a couple partners and am wondering how we will be able to get financing. The LLC will have no history and no assets. Will lenders look at all of the owners collectively? Could one owner with good credit, good debt:income and assets be the point person for financing?

Much appreciated.

Jonathan

[Brandon Beardt]

Quote from @Jonathan McGarrity:

Hi all,

I am new to real estate and will be forming an LLC with a couple partners and am wondering how we will be able to get financing. The LLC will have no history and no assets. Will lenders look at all of the owners collectively? Could one owner with good credit, good debt:income and assets be the point person for financing?

Much appreciated.

Jonathan

 Hi Jonathan,

With private money, closing in an LLC is not an issue, even if it was just formed. No, private money lenders won't have to look at all the owners in the LLC collectively. They'll only look into the "point person(s)" on the loan and use their credit score/experience for qualification. In regards to assets, they'll only consider assets currently in the LLC's account or the point person(s) account.