New to real estate. Should I create an LLC? How difficult is lending options?

[Michael Nguyen]

My friend and I are starting our real estate journey together as partners. We know we want to create an llc but is it difficult to secure a loan? What are our options and what should we expect if we structure our llc prior to looking into lending options? Thank you in advance! This community is great! 

[Robin Simon]

Quote from @Jonathan Greene:

This question is one that has been asked and answered like a billion times, but the search on here isn't the greatest.

The short version is - unless you have cash to buy or are getting a DSCR loan or buying a commercial property, you aren't starting an LLC to put this in. For residential mortgage, an LLC needs two years of its own tax returns or occasionally, a local credit union where you have an account will ok it.

The bigger question is about your partnership. You want to have long discussions about your goals, how to break a tie when you don't agree, and you should always have the exact same amount in the account.

Accurate information here - heres lots of links on the DSCR Loan option, which is generally the go-to and best loan type for investing if you are using LLC (DSCR Lenders are generally not only LLC friendly, but prefer it and in some states require it!)

✅12-Part DSCR Loan Series published here on BP
➡️https://bit.ly/3IUUIBZ