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Updated over 8 years ago on . Most recent reply

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69
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Eric Sztanyo
  • Investor
  • Fort Thomas, KY
33
Votes |
69
Posts

Getting a Loan in Investor's Name?

Eric Sztanyo
  • Investor
  • Fort Thomas, KY
Posted

I'm looking into beginning a flipping business. Currently, I have 3 fixed loans in my name (1 personal and 2 rentals). I'm looking into current financing I can get with a local portfolio lender, but I can imagine very soon that I'll be wanting to manage multiple flips at the same time, but will run into the problem of not being able to get another loan personally. 

So the question: is it common for flipping businesses who take on investor money to have the investor take out the loan in their name? 

Thanks!

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J Scott
  • Investor
  • Sarasota, FL
17,196
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J Scott
  • Investor
  • Sarasota, FL
ModeratorReplied

With portfolio lenders, you'll generally be required to hold the loan in a business entity, with a personal guarantee.

If you're working with a private lender ("investor money"), why would that investor be taking out a loan?  Private lenders will generally have cash and they will be the lender.  It's up to them if they want you to take the loan in your personal name or business name.

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