LLC on Vacation/Second Home Loan?

[Danny D.]

I'm am looking to purchase an STR with a partner and we intend to finance it with a vacation/second home loan as opposed to an investment home loan. We were intending to form an LLC as not only an operating agreement but also to take title of the home into and operate the STR in. However, since we will be obtaining a vacation/second home loan does anyone foresee a lender having issue with that since an LLC is a "business entity" and the loan we are obtaining is NOT an investment home loan? If so, does anyone have recommendations on alternatives such as possibly forming a living trust with my partner and closing title in that and then using some other legal document as our operating agreement. I understand this is probably a technical question ultimately perhaps for a lawyer and CPA but I would be very appreciative of any "friendly advice" on the topic.

[Michael Baum]

Hey @Danny D., I think @Luke Carl hit the nail on the head. There are a bunch of topics on this subject so do some searching. 

Frankly I think you just need to setup a standard partnership agreement etc. No need to do the LLC. @John Underwood always has good advice and he is usually right. You will have to take a look at commercial loans if you really intend to go the LLC route. I don't think it is necessary.

@Collin Hays was a little over the to, but he is right. Just keep everything above board always. Oh, and welcome to the forum!