Can Multiple Investors Pursue One Loan Together?

[Ben F.]

Hello BP Members,

My inquiry is regarding if multiple investors can acquire a loan together?  If there are 3-4 people, can financing be pursued for a real estate flip project? How does the financing work; primary owner and the others investors are co-signers??? How are the incomes of all 3-4 people considered into the transaction??

Please advise if you are familiar. If you have references of lenders to pursue, please include them.

Thanks!

[Bob Green]

Guac,

YES! You should form LLC together, and structure the % accordingly. Typically any member 20% or greater owner is required to sign loan documents. The borrower and co borrowers will be listed in order of high to low %. With fix n flip loans, debt and income is not a factor. Credit, experience and liquidity are the determining factors to be approved.