Getting financing when using a Texas LLC

[Clinton Jensen]

Greetings everyone, I have been trying to find a lender for our LLC's first deal. Everytime I mention that I want to buy property with the LLC, all of the lenders that I have spoken with inform me that they cannot help. I have said that I have no problem guaranteeing the loan, I have 20% down, & my LLC is over two years old with good profit. Is there something else that I need to do, or am I just looking for lending in all the wrong places?

[Grayson Wester]

@Clinton Jensen I'm a hard money lender here in Texas and we lend money to investors with LLC's all the time. You can get a traditional conventional loan through a bank for a rental property, but like you've found, they will only lend to individuals and will expect you to put 25% down.

If you are looking to do fix and flips, your best option is private money, hard money or getting set up with a line of credit through your local bank (a HELOC is an option too if you own property with enough equity).

You can always refinance out of your fix and flips into a 30 year conventional mortgage, but again, they'll want it to be in your personal name. That being said, we've got some 30 year loan products for buy and hold investors where we can lend to LLC's.