Guarantor Requirement for Partnership Deal

[Jove K.]

I am working on my first deal (in Texas) with passive investors. We planned to create an LLC and have all passive investors be silent partners on the LLC while the active investors will be general partners on this LLC. We plan to have no more than 5 investors on this deal.

From talking to my lenders (a credit unions and a local community bank), they'd require over 50% of the LLC ownership to be guarantor of the commercial loan.

Is this common with most banks and credit unions? If so, does anyone know any other option besides hard money and private equity in the scenario that we don't have over 50% of the LLC ownership to be guarantors?

[Bill P.]

@Jove Kuang just have the ownership and sharing percentages different. For example have a silent partner have a 5% ownership but share in 10% of the profit. Just set it up properly in your operating agreement. I this manner, you can own 50% or more and meet their requirements.g