Lending Options for an LLC

7 Replies

Looking for a lender that will lend to an LLC in Texas with only one property under it so far. Young credit history for the LLC but the managing members have great credit and assets. Trying to expand our options for properties and want to create a relationship with a lender that we can use for the future. Feel free to message me!

Also would love to hear input from anyone else who uses financing for their LLC and what methods they use to acquire properties. Completely understand it costs more, but we are not super interested in Quitclaiming properties into the LLC and dealing with conventional loan lenders getting upset about it (potentially).

Thanks!

Karl

@Karl McGarvey

DSCR or asset based lending is riding a huge wave right now. Rates have come down and ltv's have gone up as Fannie/Freddie constrict their portfolio percentages. On a purchase, you can go up to 80% ltv with rates in the 4's in many instances. Most of those loans are full recourse, but don't report on personal credit although the loan is personally guaranteed by the members.

Stephanie

Originally posted by @Karl McGarvey :

Looking for a lender that will lend to an LLC in Texas with only one property under it so far. Young credit history for the LLC but the managing members have great credit and assets. Trying to expand our options for properties and want to create a relationship with a lender that we can use for the future. Feel free to message me!

Also would love to hear input from anyone else who uses financing for their LLC and what methods they use to acquire properties. Completely understand it costs more, but we are not super interested in Quitclaiming properties into the LLC and dealing with conventional loan lenders getting upset about it (potentially).

Thanks!

Karl

We opened a new LLC back in November and got a loan on December. It was commercial though. They didn't seem to care really. We didn't even have a duns number yet.

I think just ask and see. 

@Karl McGarvey  thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things. What you need is a "portfolio" style of loan. I'll define these loans as loans that come from the bank's own "portfolio" of money. Sometimes referred to as "commercial" loans. These loans are a lot more flexible than "conventional" loans. Bank's money = Bank's rules. If they like you, then maybe they will lend to you. But since there is a limit to how much money the bank has access to....their rate will be higher...and usually a shorter term. The most common portfolio style loan in Texas is a 20 year adjustable rate loan. These loans are easier to get but the terms are different.  There are some 30 year fixed rate lenders here though.  Feel free to ask anything else if you need.  Thanks!

@Karl McGarvey

Sooo many options. Low rates, 30 year fixed.

Great job of you to start looking into financing and getting organized in advanced. More time, can translate into you having better terms than someone in a time crunch. Don’t forget to have your operating agreement ready as well even if it’s just your company.

Good luck!!