Borrowing through a new LLC

[Scott Alfano]

I am forming an LLC with three other partners in order to protect our individual assets when buying real estate. Unfortunately, the LLC has no credit history (as it is brand new) and has no borrowing power. We are trying to avoid buying in all cash so we can take advantage of low interest rates, and so we can buy multiple properties. How have some of you gotten through this particular kind of setback? I understand private borrowing may be a popular answer. What were the terms? If you went in with another investor, what kind of contract did you form?

Thanks

[Brian Burke]

A community bank is probably your best option. Expect the credit decision to be based primarily on your personal credit and financial strength. The bank will also require you to personally guarantee the debt.