Commercial loan structure with partners

[Brandon Eleazer]

Hi BP,

Myself and two partners are looking into getting a commercial loan to buy a 6 unit building. We've spoke w/a few different local commercial loan officers, who all say that they require each partner to qualify for the loan by their debt-to-income and credit scores. But only two of the three partners have strong financial backgrounds. 

Given that only two of the three partners qualify for a loan, would a good strategy be for the two partners to buy the property (by obtaining a 75-80% LTV) and then quit claim ownership to an LLC that contains all three partners/members? For instance the two partners buy it using AB LLC, and then quit claim to ABC LLC. Or just buy it in their personal names and then quit claim to the LLC. Which, if any, is a better way to do this?

Any thoughts about the due on sale clause here? Has anyone done something similar recently? Any alternative methods to get all three owners an equity stake? Thanks!