I have yet to invest in anything but plan in doing so before the year is up. I plan partnering with my best friend so we can raise more capital and have a better shot at getting loans. We also have entirely different skills sets that compliment each other perfectly. I have most of the details figured out as for what each of us want out of the partnership. My only question is about legal.
Do we need to form a company to have our partnership? As I understand it most lenders are reluctant to loan money to entities instead of a person. If that is the case, as first time buyers, we likely can't secure a loan. So my question is am I understanding this wrong? Or do lenders only have issues with LLCs or Corps because of their protections?
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
6y
@Jacob Simerly
You should form a company because you two will be doing a business
As for loans, you will need to find commercial loans because of holding Title in a legal entity. “Most lenders” don’t loan to entities because they are residential lenders who loan to people buying a home to live in. So, you need to find a commercial lender or buddy up to a local bank.