LLC Conundrum - How can we structure it to work?

[Jack Lee]

Hey guys,

I recently talked to some mortgage brokers and they mentioned that they refuse to give non-commercial loans to a new LLC. So far so good. No news here. Someone has to be personally liable.

My questions are the following:
1. How can investors put the property into the LLC? If this is not possible, what is the purpose to opening LLCs?

2. Is there a financial/corporate innovation that allows the lender to recourse on loans but offer limited liability ONLY against tenant lawsuits?

Thanks

[Steve Babiak]

Originally posted by Jack Lee:

Hey guys,

I recently talked to some mortgage brokers and they mentioned that they refuse to give non-commercial loans to a new LLC. So far so good. No news here. Someone has to be personally liable.
...

Ask about COMMERCIAL loans for the LLC, and then see what they say. Be prepared to give a personal guarantee.