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Updated almost 16 years ago on . Most recent reply

User Stats

557
Posts
71
Votes
Jesse Ramirez
  • Specialist
  • Las Cruces, NM
71
Votes |
557
Posts

Can LLC formed to buy real estate borrow from bank? Bankers/Lenders please help!

Jesse Ramirez
  • Specialist
  • Las Cruces, NM
Posted

I recently formed an LLC solely for the purpose of real estate investing. Question is, will a bank lend to my zero asset entity based on the facts of a real estate deal alone? For example, if I find a 75% occupied multi family property with positive cash flow will a lender lend to my entity based on the fact that the property should pay itself.

Most Popular Reply

User Stats

557
Posts
71
Votes
Jesse Ramirez
  • Specialist
  • Las Cruces, NM
71
Votes |
557
Posts
Jesse Ramirez
  • Specialist
  • Las Cruces, NM
Replied

Thanks for the input gentleman. Well the goal is to find a property that will pay itself almost without a doubt. With a DSCR of 1.25 and above.
The down payment wouldn't be a problem, I would either ask the seller to carry a second note or front the down payment myself.
If I found a property with great financials would I have a problem having my LLC get approved without my personal credit being a factor? If so, how would I go about marketing my property to lenders.

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