Ways to get financing as an LLC for STR's?

[Brett Deas]

For some context, I have been told you can't close in an LLC in CO if you are obtaining financing, I am not sure if that is entirely accurate. Either way, I am looking for a workaround to close in an LLC but also obtain financing for Short term rentals. I myself cannot qualify for any traditional financing, but I have a long list of investors willing to put their money into deals. What I have done in the past is just take the joint title but that caused them to go through the mortgage app. process which was a chore and none of my other investors will waste their time going through that.

All that said, does anyone have any ideas on possible structures? I have looked into doing a syndication-type model but that won't work as of right now. Does anyone know of a structure where I can obtain financing without having a partner go through the loan application process?

[Erik Estrada]

Quote from @Brett Deas:

For some context, I have been told you can't close in an LLC in CO if you are obtaining financing, I am not sure if that is entirely accurate. Either way, I am looking for a workaround to close in an LLC but also obtain financing for Short term rentals. I myself cannot qualify for any traditional financing, but I have a long list of investors willing to put their money into deals. What I have done in the past is just take the joint title but that caused them to go through the mortgage app. process which was a chore and none of my other investors will waste their time going through that.

All that said, does anyone have any ideas on possible structures? I have looked into doing a syndication-type model but that won't work as of right now. Does anyone know of a structure where I can obtain financing without having a partner go through the loan application process?

 Hey Brett, 

You can have title under an LLC with a DSCR loan but you would need to have either you, your partner, or both to personally guarantee the loan.