Me and my friends are looking to invest in rental properties in DFW area in partnership. We are very new and trying to find information on financing. We are 3 people who want to create a LLC and need financing to fund our investment after the 20-25% down payment. What I understand is that banks does not give loans to a new LLC.
What are our options? We are really lost on this issue.
Welcome @Anshuman Jain ! You will probably have to buy as tenants in common and all sign personally for the loan. You can have an LLC or JV agreement to outline the Ds and how your partnership will run, overcome problems and exit. On my first and only deal, I would probably go with a joint venture.
They say the only ship not meant to sail is a partnership. Lots of folks advocate them. I do not. For every success story you read about, my guess is there are 4 failures quietly tearing people apart. But.. that's just me. Good luck!
Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.
@Anshuman Jain Welcome to BP Community, a great place to share and enhance your REI knowledge. Enjoy your stay with us!
Yep, lenders typically won't lend to not only a new LLC, but an LLC at all. Because it has to be a personally-guaranteed loan when it comes to residential mortgages. Now if you guys are all buying a lot of properties and you are getting into a portfolio loan type of thing, then that's a different story because it will be a commercial loan.
How are you guys planning to structure the deals? Dallas is very low on cash flow and property prices there right now are higher than they were even before the crash in 2009. Sooo...curious on where you will be looking for the profit from? At least in terms of splitting it 3-ways.
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