BRRRR Financing with LLC

[Nick Thornquist]

Hi there, I'm working with a partner on obtaining our first property and are trying to do a BRRRR on a fourplex. Right off the bat, I'm thinking it would be wise to create an LLC for the partnership but I'm unsure whether that's necessary. I understand high level the pros to creating one, but I'm concerned about the financing. Would we have a hard time re-financing to a mortgage following the rehab if there's no credit history or would the bank primarily look for the property having equity and being seasoned? We have a good team and I'm confident we could create enough equity to cover the costs, but want to make sure I'm approaching this the right way. We're planning on obtaining a short term HML for the purchase and rehab so want to make sure we don't screw ourselves once it's time to refinance. Appreciate any advice, thanks!