I’m working with some friends who are looking at getting our feet wet with a small investment property (probably around $150K). We have cash that will allow us to put up to 30% down. We would like hold title in an LLC and are about to start approaching lenders. I have some questions regarding financing when purchasing with an LLC.
Since the LLC has no established history, we understand that will need to provide personal guarantees for the loan. I know that this is not uncommon, but I’d like to understand it better.
Are there any lenders types that are better work with in this respect? E.g., do the big banks do this sort of thing, should we focus on smaller local banks, or do we need to work with a more specialized broker?
Any other tips or experience in this area would be appreciated.
Consider each individual setting up their own S-corp, then buy the property as a partnership of the corporations. Sounds complicated, but it makes divvying up things in the partnership a little easier.
Consider each individual setting up their own S-corp, then buy the property as a partnership of the corporations. Sounds complicated, but it makes divvying up things in the partnership a little easier.
Consider each individual setting up their own S-corp, then buy the property as a partnership of the corporations. Sounds complicated, but it makes divvying up things in the partnership a little easier.
Consider each individual setting up their own S-corp, then buy the property as a partnership of the corporations. Sounds complicated, but it makes divvying up things in the partnership a little easier.
Consider each individual setting up their own S-corp, then buy the property as a partnership of the corporations. Sounds complicated, but it makes divvying up things in the partnership a little easier.
Another possible downside to giving personal guarantees is that true guarantors are not entitled to anti-deficiency protection in California, even if it is a non-judicial forclosure if the LLC defaults.
Another possible downside to giving personal guarantees is that true guarantors are not entitled to anti-deficiency protection in California, even if it is a non-judicial forclosure if the LLC defaults.
Another possible downside to giving personal guarantees is that true guarantors are not entitled to anti-deficiency protection in California, even if it is a non-judicial forclosure if the LLC defaults.
Another possible downside to giving personal guarantees is that true guarantors are not entitled to anti-deficiency protection in California, even if it is a non-judicial forclosure if the LLC defaults.
