Commercial Lender covering LLC (llc hold SFH or Duplex)

[Rio Chao]

We plan to buy and put several sfh or duplex in a llc. Wonder if is there lender lending to llc without or limited recourse to owner of llc. Thanks!

[Jon Reed]

You will RARELY find a bank who will loan to an LLC without making at least one owner a guarantor on the loan. It would be one of the stupidest decisions for a bank to loan to just an LLC. Think about it... You create an LLC and purchase $500,000 in real estate with it. The market flips and home values and rents drop. You file bankruptcy and are done with it... now the bank is solely on the line holding half a million dollars in bad real estate. That is a risk that no bank wants. They want to see that you are confident enough to put your own name on the line and not just an LLC which can easily be closed up without any negative consequences to the owner.