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Updated over 3 years ago, 07/25/2021

User Stats

2
Posts
1
Votes
Christopher Bowling
  • Homeowner
1
Votes |
2
Posts

Business loan with LLC

Christopher Bowling
  • Homeowner
Posted

Hey BP!

I'm looking for some advice on obtaining a business loan using the rental properties in an LLC as collateral. Is there a loan program for LLCs to get a 70%+ LTV ratio? I've heard of personal loans that do this but I'm new to the LLC side of investing. Thank you!

User Stats

1,386
Posts
1,175
Votes
Allan Smith
  • Developer
  • Nashville, TN
1,175
Votes |
1,386
Posts
Allan Smith
  • Developer
  • Nashville, TN
Replied

Trying to understand what you are getting at here.

  1. Most LLCs don't borrow money on their own. You as the owner will get underwritten for the loan and it's just titled in the LLC.
  2. You might also be confused on loan products. There are fannie/freddie loans which is where you get most homeowner loans, and where people talk about this 10 loan cap for rentals. But if you are titling it in an LLC, you'll need to go to commercial loan department of a bank, and usually the local banks are where you go for this.
Account Closed
  • Lender
  • Charlotte, NC
117
Votes |
218
Posts
Account Closed
  • Lender
  • Charlotte, NC
Replied

Loans close to LLC for single family home investing can be up to 80% LTV for purchase and up to 75% LTV for cash-out refinance. New LLC has no problem.

CV3 Financial logo
CV3 Financial
|
Sponsored
Fix & Flip | DSCR | Construction Loans Up to 90% LTV - Up to 80% Cash Out - No Income Verification - No Seasoning Requirements

User Stats

1,083
Posts
617
Votes
Nick Belsky
Lender
Pro Member
  • Residential and Commercial Broker
617
Votes |
1,083
Posts
Nick Belsky
Lender
Pro Member
  • Residential and Commercial Broker
Replied

@Christopher Bowling

If you are referring to pulling equity out of your rental properties, you can do this up to 80% in Texas, by law. Many of the lenders I work with will do 75-80% LTV on cash outs under an LLC. The only personal loans that I know of where you can be in an LLC and not commercial are DSCR, Asset Depletion, and Bank Statement loans. There are commercial versions of these as well.

You appear to be in Texas.  Let's hop on a call and talk through exactly what you are looking for.  I can help you out or at least guide you on where to go.

Cheers!

Nick Belsky

business profile image
Belsky Mortgage, LLC
5.0 stars
11 Reviews

User Stats

928
Posts
271
Votes
George Despotopoulos
Lender
  • Lender
  • New York, NY
271
Votes |
928
Posts
George Despotopoulos
Lender
  • Lender
  • New York, NY
Replied

@Christopher Bowling you can get a 70-75% LTV against the portfolio to the LLC -- the LLC will be the borrower on the loan but the members/owners of the LLC will give personal guarantees on/for the loan. That would mean the owners/members would need to have their credit check. You can get a 30 year fixed loan @ 4.375% - 4.875% depending on property values, market, DSCR, and your credit score.

  • George Despotopoulos