Financing question concerning a 40 unit apartment complex.

[Samuel W.]

My business partner and I are looking to purchase a 40 unit apartment complex. We collectively have 25% to put down on the loan. For context regarding our respective financial situations, my business partner and I both collect a $250,000+ salary each from our corporate jobs.

Will the bank require me to put my house as collateral? If so, how can I avoid this.

[Account Closed]

@Samuel W. 40 unit apartment complex is definitely commercial property. It underwrites by the cash flow of the property. You got the required down payment. That should be enough. The bank may look at your house when calculating your net worth, but they shouldn't require your house as a collateral. People creates new LLC for the purchase and your house is not asset of the LLC.