Lenders who will Lend to an LLC for STR Properties

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Lenders who will Lend to an LLC for STR Properties

Steven Taylor
Member since 2021 · 24 posts · 14 votes

Hi There, 

We have an STR under contract in RI and are looking for Banks/Entities that will lend directly to an LLC. Any recommendations would be greatly appreciated!


Thanks,

Steven

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Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
3y

I have a DSCR lender who lends to an LLC. Not sure if they are licensed in your state but happy to share contacts.

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y

    Any commercial loan (local bank) or a DSCR which most brokers can do now.

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    1Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    I have a DSCR lender who lends to an LLC. Not sure if they are licensed in your state but happy to share contacts.

    2Reply
  • Kevin Woodard
    Lender · Nationwide · Member since 2021 · 220 posts · 105 votes
    3y

    I only lend to entities and would be happy to answer any questions you have. 

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Steven Taylor:

    Hi There, 

    We have an STR under contract in RI and are looking for Banks/Entities that will lend directly to an LLC. Any recommendations would be greatly appreciated!


    Thanks,

    Steven


    Plenty of DSCR options that will be able to do this. Happy to connect

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    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Some DSCR lenders will lend based off STR numbers, but the LTV goes down

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    In my experience all DSCR lenders will lend (if not require) property to be in an LLC. An example would be @Tyler Solomon

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    1Reply
  • Tony Severance
    Lender · Fort Worth, TX · Member since 2022 · 88 posts · 37 votes
    3y

    Hi Everybody, 
    Sorry, but I am just now seeing this month old post. As others have mentioned, it is very common to close on a STR in the name of an LLC. And yes, DSCR loans often close this way. It is not difficult to execute this type of closing. However, as both prices and interest rates have increased, it has become more difficult to qualify STR purchases using 1007 rents. This is where using the short term rents to qualify for DSCR loans has been so powerful. We all know that STR is typically much higher than annual lease amounts, so using the short term rents is critical to making these deals work. As @Eliott Elias mentioned, the LTV may decrease by 5%, but that may also depend on the borrower's experience with STR's. Ping me if you would like more details about how this works.

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