First time buying through an LLC Partnership, need advice finding a lender

Cleveland, Ohio
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First time buying through an LLC Partnership, need advice finding a lender

Miguel PobletePro Member
Member since 2022 · 7 posts · 6 votes

Hi Everyone! My siblings and I are purchasing a rental property together through an LLC and currently are talking to a national bank. They let me know that closing would take around 45-60 days. Is this normal? And if anyone has any good recommendations for DSCR lenders in Cleveland that can potentially close quicker, I'd love to learn more!

Thanks in advance for the advice and for the good vibes

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  • Travis Main
    Lender · Orlando, FL · Member since 2023 · 220 posts · 183 votes
    2w

    45–60 days is definitely on the longer side for a DSCR loan. I'm a lender and we do quite a bit of DSCR financing in Ohio. Assuming there aren't any unusual issues with the property or appraisal, we can typically get these closed considerably faster than that.

    I’d be happy to take a look at the deal and give you an idea of terms and timeline. Feel free to shoot me a message with the property and purchase details and I can run some numbers for you.

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  • Michael Eskenasy
    Investor · Pacific Northwest · Member since 2026 · 511 posts · 289 votes
    2w

    45–60 days is pretty slow for a straightforward DSCR deal. The LLC itself usually isn’t the part I’d worry about; with multiple siblings, I’d be more focused on making sure the operating agreement, ownership percentages, guarantors, liquidity/reserve requirements, title, and appraisal are all clean before underwriting gets too far down the road.

    I’d also compare more than just closing speed. Ask each lender for the full picture: rate, points, prepayment penalty, DSCR requirement, reserve requirement, recourse, seasoning rules, and exactly what can still kill the deal after appraisal.

    A lender promising 20 days but changing terms at the finish line is worse than a lender who tells you up front they need 30.

    For Cleveland specifically, I’d shop this to a few DSCR lenders and make them quote the same deal side-by-side. That usually tells you pretty quickly whether the bank’s 45–60 days is a property issue or just their process.

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  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 663 posts · 226 votes
    2w

    Hey Miguel!

    No definitely not normal. Every deal is a bit different, but as mentioned already 30 is convervative enough. Less is definitely doable if needed though, quickest I've seen was 4 days haha. Depending on the deal be sure to keep an eye out for different prepayment penalties, better to make a long term strategy up front than get stuck with something because you weren't told. If it's helpful though feel free to reach out happy to go through some details for you!

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2w

    What type of property? Some commercial appraisals can take upwards of 3-4 weeks although turn arounds are generally a little quicker right now due to the lack of transactions and appraisal requests. Make sure your operating agreement and organization documents are in order and its clear who is responsible for the personal guarantee. Also cross check that with the lender's requirements because many banks require everyone with ownership interests above certain percentage to be a PG.

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2w
    Quote from @Miguel Poblete:

    Hi Everyone! My siblings and I are purchasing a rental property together through an LLC and currently are talking to a national bank. They let me know that closing would take around 45-60 days. Is this normal? And if anyone has any good recommendations for DSCR lenders in Cleveland that can potentially close quicker, I'd love to learn more!

    Thanks in advance for the advice and for the good vibes

    Sometimes DSCR loans take longer but I would say 45 days max

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 494 votes
    2w

    If a DSCR loan for a 1-4 unit, 21-30 days is possible for funding if the appraisal is ordered, scheduled and paid for at the beginning and the requested documents are turned in promptly. If a 5-8 unit DSCR loan or another type of commercial transaction, it might take longer such as 45-60 days depending on the factors mentioned. Happy to connect to discuss further.

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  • Ray WilliamsBusiness Member
    Lender · Denver, CO · Member since 2017 · 148 posts · 68 votes
    2w

    on getting siblings aligned on a purchase together, that part alone trips up a lot of partnerships. On the 45 to 60 day number, that's long for a straightforward 1 to 4 unit DSCR loan, but a multi member LLC purchase often adds steps a solo borrower deal doesn't have. Title has to confirm the LLC is validly formed and in good standing, the operating agreement needs to spell out who can bind the entity and sign closing docs, and most DSCR lenders want every member above roughly 20 to 25 percent ownership to personally guarantee the loan, which means full credit and asset documentation for each sibling, not just one. If any of those docs are still being drafted or one sibling hasn't pulled credit yet, that alone can eat two or three weeks before the file even gets to underwriting. The other piece worth asking about directly is how the lender is calculating your DSCR ratio, since the rent figure they use, market rent from the appraisal versus an actual signed lease, can shift your pricing and sometimes your approval. I'd ask the bank for a written breakdown of what's holding the file at 45 to 60 days specifically, entity docs, appraisal, or underwriting review, since that tells you whether a faster DSCR lender actually solves your timeline or just moves the same bottleneck somewhere else. Bear in mind what is commonly glossed over with DSCR is lenders not talking about how they get you the lowest rates. It is simple, a longer prepayment penalty. I've seen this trap investors into loans later and really gouge them for operating profitably in the future all at the tradeoff of either picking the wrong lender or not being educated about this topic.

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  • Terry Garrett
    Member since 2026 · 47 posts · 9 votes
    2w

    Miguel, I'm an investor myself and also work in commercial lending with The Fiirm. We do DSCR financing in Ohio, so this may be something we can take a look at. If you want, send me a message with the property and deal details and I'd be happy to see if we have an option that makes sense.

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  • Tyler MccleanPro Member
    Investor · Nassau County, NY · Member since 2022 · 69 posts · 19 votes
    2w

    Hey Miguel, I can take a look. I can definitely get this closed in under 30 days. Shoot me a DM to go over your scenario and figure out how to get this done for you!

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  • Nicholas FloydBusiness Member
    NY · Member since 2026 · 166 posts · 56 votes
    2w

    Miguel, another option worth considering is business funding through your LLC using your personal credit profile, especially if your credit is strong. Depending on the profile, that can potentially give you access to business lines of credit and 0% APR business credit cards that can help with the purchase, reserves, renovations, or other expenses while preserving cash.

    I also work with multiple lending options, so I can help you compare that route with DSCR financing. If the current LLC is too new or falls into an industry that some lenders consider higher risk, I also have aged shelf corporations available that may be an option when structured properly and within the lender’s requirements. The goal would be to look at the entire deal and determine the cleanest funding strategy rather than forcing everything through one lender.

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    2w
    Quote from @Miguel Poblete:

    Hi Everyone! My siblings and I are purchasing a rental property together through an LLC and currently are talking to a national bank. They let me know that closing would take around 45-60 days. Is this normal? And if anyone has any good recommendations for DSCR lenders in Cleveland that can potentially close quicker, I'd love to learn more!

    Thanks in advance for the advice and for the good vibes


    As discussed well in this thread - a DSCR Loan should be able to close anywhere from a couple of weeks to 45 days, but a lot of the time it is also dependent on the borrower - two sides to the coin, a borrower that gets all docs in quickly and cleanly can certainly close very quickly, a borrower that drags feet or struggles sending in the documents can certainly be at fault for pushing the deal past the 1 or two month mark at no fault of the lender

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  • James Driscoll
    Banker · MA · Member since 2026 · 120 posts · 31 votes
    2w

    The Pacific Northwest investor above is on the right track, but I'd put even more weight on the operating agreement piece. With multiple siblings on title through an LLC, most DSCR lenders are going to require all members who own above a certain threshold (commonly 20-25%) to personally guarantee the loan, and that's where deals stall. If the operating agreement is ambiguous about decision-making authority, ownership percentages, or buyout provisions, underwriting will kick it back and that's easily two to three weeks of delay right there. Get the operating agreement reviewed and finalized before you're deep into any lender's pipeline. On reserves, DSCR lenders typically want to see 6-12 months of PITIA in liquid reserves after closing, and with multiple guarantors that calculation can get complicated depending on whose assets count. The lender promising a 20-day close is almost certainly quoting that for a single-borrower, clean-file scenario. A multi-member LLC with siblings who may have varying credit profiles and asset documentation is not that file. Clean docs first, then shop the timeline.

    James Driscoll

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  • Oliver Moreau
    Member since 2026 · 7 posts · 0 votes
    2w

    If you’d like big picture advice on how to grow a portfolio in the Cleveland market, I’d say it’s best to prioritize the property. Focus on the property and find the best lending product to wrap around it. Dm me if you’d like to talk in detail.

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  • Rudy TaghiPro Member
    Realtor · Los Angeles California · Member since 2018 · 11 posts · 3 votes
    1w

    Hi Miguel, I saw your post about buying through an LLC with your siblings and looking at lender options. I'm a loan officer (CA) and RE-investor, so I wanted to ask whether you're still comparing financing or if you've already found a lender you're comfortable with. 45 to 60 days is not typical. But each borrower has a unique scenario so...

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  • Miguel PobletePro Member
    OP
    Member since 2022 · 7 posts · 6 votes
    1w

    Thank you everyone for the seriously helpful input! We ended up not getting our offer accepted even though we were around $6k above asking, this is an incredibly popular street with huge upside in a very in demand Cleveland suburb, the most direct comp went for 26k above asking earlier in the spring.

    We had our ceiling though, and despite appreciation opportunity, the current market rents (even on the generous side) don't support going much higher and that's what I'm underwriting my offers on.

    But everyone's advice regarding seeking out different lenders and lending types is very helpful! We'll do a deal in the future, and I'm glad to have so much more insight on LLC lending and what to look out for and expect. I'm sure I'll have more questions as I continue to look!

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    1w

    Sounds like you understand the market and didn't allow emotions to cloud your judgment. Stay disciplined and the correct opportunities will present themselves. Best of luck.

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  • Michael AzzamBusiness Member
    Real Estate Agent · Cleveland, OH · Member since 2020 · 19 posts · 17 votes
    1w

    Miguel, being $6K over asking and still losing tells you how aggressive the competition was—it doesn’t necessarily mean your offer was wrong.

    Since the rent couldn’t justify a higher price, increasing the offer would have meant betting on future appreciation to rescue the deal. That can be especially risky around Cleveland, where performance can vary significantly between nearby streets.

    One useful takeaway for your next offer is to solve the financing timeline now. Get the LLC documents reviewed, confirm which siblings must guarantee the loan, and have a DSCR lender clarify how they'll calculate the qualifying rent. Then, when the next property makes sense, you can compete through speed and cleaner terms instead of simply offering more money.

    I work in the Cleveland market, so I’d be glad to offer a local perspective if you want a second set of eyes on the next one.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1w

    DSCR loans normally take 30-45 days. If title, insurance, appraisal, etc.. is on top of it, the quickest I have seen these closed and funded is about 17 days.

    The delays usually come from the 3rd party title and insurance reps. If the deal and file is clean, very rarely will you have hiccups in the underwriting process.

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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    1w

    Ideally you wanna be able to close in about 30 days. However, there being multiple buyers involved in the partnership, I can see why they're quoting you a longer timeframe.

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  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 149 posts · 42 votes
    1w

    Congrats, @Miguel Poblete ! A 45–60 day closing isn't unusual for a national bank, especially with an LLC, multiple members, an appraisal, and title work. Some DSCR lenders may close faster, but compare the full package—not just speed.

    I'd get quotes from two or three lenders and compare rates, fees, reserves, prepayment penalties, LLC requirements, and realistic timelines. A Cleveland-area broker who regularly handles investor loans may also know which lenders are closing quickly.

    Since you’re buying with siblings, make sure your operating agreement clearly covers contributions, decisions, guarantees, distributions, and what happens if someone wants out. A faster loan is nice, but reliable financing and a clear partnership structure matter more.

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  • Steve Waller
    Lender · Houston, TX · Member since 2026 · 60 posts · 6 votes
    1w

    45 to 60 days is a bank timeline rather than a DSCR one, so the advice above is right. But when a multi-member LLC file runs long it is almost never the loan that is slow, it is the entity paperwork, and no lender can speed that part up for you.

    What to have finished before you formally apply: an operating agreement signed by every sibling, an EIN, a certificate of good standing from Ohio, and title vesting that matches the LLC name exactly. Expect every member above the lender's ownership threshold to sign as guarantor and have credit pulled, so if one sibling has a thin file it is much better to find that out this week than in week four.

    The two things that actually set the closing date once the file is in are the appraisal, which is the long pole in Cleveland this time of year, and the insurance binder in the entity's name rather than a personal one. Order both the day you go under contract and you will beat most of the quoted timelines.

    One thing worth settling now that has nothing to do with the loan: agree in writing what happens if one of you wants out in three years. The loan documents will restrict transfers of membership interest without lender consent, and siblings who never discussed it discover that at the worst moment.

    How many of you are on the LLC, and will all of you be on the loan? That decides your timeline more than the choice of lender does.

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  • Christian TurnerPro Member
    Lender · Coral Gables, FL · Member since 2026 · 20 posts · 5 votes
    1d

    Miguel, broker here, and I'll skip the pitch since you have plenty above. The useful detail nobody has spelled out: 45-60 days means the national bank is treating this as a commercial/portfolio loan with a credit committee. A DSCR loan on a 1-4 unit is a 21-30 day product, and the LLC with siblings only adds paperwork, not time, if you prep three things before you apply:

    1. Guarantors. Any member at or above the lender's threshold (usually 20-25% ownership) signs a personal guaranty and gets a credit pull, so agree now on who owns what and make sure everyone at that level is comfortable being on the hook. The lowest middle score among guarantors typically prices the loan.

    2. The operating agreement. It needs to name who can sign for the LLC and authorize the borrowing; lenders ask for it plus the articles, EIN letter and a certificate of good standing from Ohio. Have the PDFs ready on day one.

    3. Reserves and cash to close. Most DSCR lenders want 3-6 months of PITIA in reserves and sourced down-payment funds; with several contributors, document each sibling's wire separately.

    Do that and the 45-60 day quote turns into about a month with almost any DSCR shop.

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