All Forum Posts by: Ian Plocky

Hi everyone!
I have heard some mixed answers on the following question: do commercial lenders prefer/mainly lend to single-asset LLCs? Or does it not matter?

Moreover, if I have an LLC that already has a financed commercial property in it - would a commercial lender not offer the LLC a loan since there is already an asset(s) in it? 

Thanks!
 

@John Blanton, thank you so much for responding. I greatly appreciate it!

You mentioned 'but also enough in assets/ liquidity after the down payment in case the property runs into issues you can personally cover the costs'. That makes intuitive sense, but there is something about that also feels funny - an LLC is supposed to protect your personal assets. Using that logic, it feels contradictory that you would need to supply your personal assets as proof/collateral that you can pay for the property. Is there a circumstance where a lender would look at your personal assets in order to qualify you for the loan, but not be able to come after your personal assets in a lawsuit (if LLC)?

'

Hi all! 

It is my current understanding that in order to qualify with most lenders for a commercial loan, the loan applicant needs to be a business entity (i.e. LLC). First and foremost, if this is incorrect - please let me know!

That being said, my follow-up question is: 

Okay - so if I need to form an LLC in order to apply for a commercial loan on a property that has 5+ units, what are lenders looking for? Do they look at my personal mortgagee attributes like a residential lender would do (if I was applying under my name)? Or do they look at the business entity's mortgagee attributes, which... I don't know exactly what those would consist of if this is a new LLC with the sole purpose of purchasing the property in question.

Thanks in advance!

@Joel O'Leary would you mind sending me your CPA's information as well? 

Thanks!

@Lamar Wint, you got it!

Does anyone have a great template for a Joint Venture agreement?

I'm not necessarily looking for the exact financial details, more so a legal template. 

Looking for an agreement, specifically, between two partners buying a property together as tenancy in common owners/landlords. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $135,000
Cash invested: $33,750

Purchased a duplex in the up-and-coming Dayton, KY. Since it was my first deal, I sought out for something that was less labor-intensive with regards to rehabbing.

Hi all, 

I'm about to close on a property in the Northern Kentucky area (Dayton, KY to be exact) and have struggled to get in contact/find property managers in the area. 

Does anyone have any suggestions or referrals!

Thanks, in advance!

@Ed Moran, I have the same question - did you get an answer? Thanks @Rick Howell for sharing - this is awesome!