Does an LLC with multiple partners increase odds of loan approval
So I have 3 potential partners that I am considering creating an LLC with. The partner with the most capital to contribute and probably the most knowledgeable on the real estate business has a pretty bad credit score. Without capital, things will be much harder for us to take off. But the others and myself are concerned his credit will hurt the LLCs ability to obtain a loan. The other 3 of us have good credit so my thinking is we'll be ok. But what makes the situation really tricky is we have to create an LLC to request a loan collectively. Which I believe means we can't utilize a conventional loan and have to request a commercial loan. Reason being banks dont honor conventional 30 year loans to LLCs(correct me if I'm wrong). So that means we have to create the LLC and have our operating agreement prepped by a lawyer. The fear is we spend a couple thousand for the LLC and we wont be able to qualify for a commercial loan. Yes, I know hard money lending is an option, but the concern of being able to refi is an issue we'll have to face on the back end of a hard money loan. So to boil up my question in simple terms. Can we partner with a guy with bad credit and be able to finance on our investment property? And does more partners increase our odds of getting approved?