Nobody wants to lend to an LLC!? Allentown, PA
Hey everyone,
I could use some guidance please! I am having a really hard time trying to find a lender that will finance this deal for me! I opened an LLC for my REI business and it seems that no bank wants to lend to an LLC for a small 3 unit building.. Has anyone else come across this? How did you get past it?
Here's the deal, I opened an LLC to gather partners and exchange equity in the business for capital. So far I have three investors for a total of $19,000. I need these funds to apply to the down payment and closing costs of the deal I'm working on. There is only one bank I've come across (I've spoken to 10) that would do the deal. But they will only fund up to 75% (I ran my numbers on 80%) and will only amortize up to 20 years (I ran my numbers on 30).
Obviously, since I have investors in the mix now, I can't NOT use the LLC but at these numbers, none of my deals make financial sense! The only other way to make the numbers work is if I manage the property myself, which I'm not opposed to but I would like to have the buffer if I find that it would suit me better to outsource property management. What do I do??