All Forum Posts by: Jacqueline Bruen
Jacqueline Bruen has started 1 posts and replied 4 times.
Post: Mortgage for an LLC?
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I'm amazed by this community; thank you all so much for your help!
Post: Mortgage for an LLC?
- Posts 4
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Quote from @Stuart Udis:
@Jacqueline Bruen Whether the LLC has been in operation or not, if you purchase the property through a LLC expect real estate loans to have recourse meaning you will personally guarantee the loans. This will remain the case until you reach a point where non recourse debt is available but it's rare and generally only applicable to larger transactions where leverage is customarily lower and there remains carve outs for "bad boy acts".
I frequently see posters on here say "they can't get a loan for properties owned by an LLC" but I suspect they incorrectly thought that they would not have to personal sign on as a guarantor. That's not the case.
Post: Mortgage for an LLC?
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Since DSCR loans are property-specific, I suppose this means that I can't get pre-approved and shop around. Do you find that people send lenders a couple of properties to get DSCR loan approval for, or do people just commit to one property early on and go for the DSCR loan? Is it a laborious process as a lender to get these loans approved?
Post: Mortgage for an LLC?
- Posts 4
- Votes 0
Hi there!
I've started an LLC to buy my first residential investment property. I will be able to provide a 20% down payment through the LLC, but the question I have is: don't I need to personally guarantee the loan because the LLC does not have credit history? I've heard it is bad practice to personally guarantee a business loan.
What do you pros recommend? How can my LLC get a loan?