closing in a TX LLC that is owned by out of state (SD) irrevocable trust

Member since 2021 · 16 posts · 5 votes

Hi, I am new to this, my mother setup an Irrevocable trust for her Canadian grandchildren, the trust has a corp trustee. the trust owns a TX LLC which i run out of state. I wonder if there are lenders that will allow closing in a TX LLC that is owned by an Irrevocable trust. Any help / guidance will be highly appreciated.

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Mayo Gilfurt
Real Estate Consultant · Connecticut Ct · Member since 2026 · 130 posts · 30 votes
7mo
This can be financeable, but the structure matters. Most lenders will look at who the trust beneficiaries are, whether the trust is revocable/irrevocable, and who signs on behalf of the LLC. We usually see smoother execution when the trust docs, operating agreement, and signer authority are aligned upfront.
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Elijah ROberts
OP
Member since 2021 · 16 posts · 5 votes
7mo
The beneficiaries are foreign minors, the LLC is Manager managed by a US C-corp.
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Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
7mo
Yeah, this gets tricky. Most lenders want trust docs + operating agreement upfront. Hard money lenders are usually more flexible with complex structures than banks. Have you tried any hard money guys yet?
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- Elijah ROberts
  OP
  Member since 2021 · 16 posts · 5 votes
  7mo
  Quote from @Bo Smith:
  
  Yeah, this gets tricky. Most lenders want trust docs + operating agreement upfront. Hard money lenders are usually more flexible with complex structures than banks. Have you tried any hard money guys yet?
  
  not yet, I'm a newbie. any referrals of those you have worked with would be highly appreciated.
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Jonathan LeeBusiness Member
Lender · FL · Member since 2025 · 86 posts · 30 votes
7mo
Hi Elijah,
Given the structure, foreign minor beneficiaries and an LLC managed by a U.S. C-Corp, this wouldn't qualify for conventional financing. It would need to go through a Non-QM lender.

It can be doable, but the key will be identifying a U.S. individual who can provide a personal guarantee and documenting the full ownership chain (trust, LLC, and corporation).

If there’s a U.S. guarantor and clear signing authority, we should have options. I’m happy to review the structure and confirm.
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Melissa Brooks
Member since 2026 · 19 posts · 0 votes
7mo
Hi there
Agreed, most non-QM, or investor-friendly lenders will allow you to close in an LLC registered in Texas. No issue if the entity is out of state and registered here as a foreign entity.
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