Acquiring a loan in an LLC

[Cole Herbst]

Hello fellow investors, A few friends and I are looking to start an LLC that purchases, fixes up and rents out properties. Does the loan process differ when doing so as a business? And how so? We have a private lender for the initial purchase but would like to refinance once we fix the property up. Appreciate any and all help, happy investing!

[Kiyon Harley]

In many cases the loan process can be the same or very similar. In such scenarios you and/or your partners or a cosigner most likely would have to personally guarantee the loan for a new business. I obtained my first line of credit for a similar reason as your pursuit. I established a new LLC and enaged a small/local bank that granted me a line of credit to acquire and rehab a property. The caveat was I had to personally guarantee the line of credit loan. Overall the process was similar to when I bought my personal residence other than the fact I dealt with the commercial department versus the residential lending. Check out some of your local banks. They may have a lending program for startups.