Calling all LLC accepting lenders in Texas & NY

I’m a rookie who just learned this month that its a BIG mistake to buy SFRs in your name if you buy and hold. >:(

So NOW I am ON THE HUNT looking for LLC-friendly lenders who can do refi’s on my various properties in Texas and NY. So far I get definite NOs from Texas brokers and mealy mouthed maybes from NY. I offer personal guarantees up front but doenst help.

It would seem a logical step that this board might have a list of LLC-Friendly Vendors like lenders who do loans on SFRs at normal competitive rates? I should think maybe they’d be valuable to all?

At least to me, anyway. . . I’m in Calif and need help finding LLC accepting lenders for SFRs in Texas and NY . . . any referrals to lenders are appreciated MUCHO.


Are you talking to commercial loan officers? If not, that may be why you are getting the cold shoulder.

well, im talking with lenders which do both but as i indicated in my post my properties are all SFRs not commercial.

Your question implies that the friendly skies of LLC-lenders are flown only by commercial property?


No, my response implies that your LLC is a business entity. Institutional lenders make commercial loans to business entities, not consumer loans.

so how SPECIFICALLY do i find lenders willing to lend to LLC in Texas and NY?


Unless your LLC entity is a long-term entity with VERY well established credit lines (and several of them), you won’t…that’s what these folks are trying to tell you!


wow, i have read in many many places that new investors are establishing new LLCs and with a personal guarantee and immediately buy properties with that LLC.

It seems to me tho that the personal guarantee pierces that viel of personal asset protection thereby defeating the purpose altogether, right?

the many investing books teaching new LLC buying SFRs are smoke and mirrors then i gather?

Don’t quote me here, but I’m almost certain that if you get a loan made out to your LLC, that you sign on personally, you DO NOT lose your (potential) asset protection. You’ll be liable for that particular loan only.

You cannot just setup and LLC and get loans to it that aren’t also guaranteed by you, otherwise anybody with any idea, realty/business/etc, could just test their ideas with no worries by setting up a little entity.


What is your relationship in your LLC? Could you be traced as the owner of your LLC? A collection attorney would be able to request your LLC be set aside if it can be proved that your LLC is a “sham” or “alter ego” for you. So purchasing the property using a loan in your name is NOT your real problem.

Every asset protection strategy is different for each individual. Your financial situation, tax strategy, operating entity is unique to YOU. Especially the strategy of how you buy, sell or rent homes. Are you doing subject to or lease options? Do you rehab or flip homes? Do you wholesale homes? Do you have rentals? Commercial property vs residential property?

The most talked about strategy that I’ve heard and was taught. Using Land Trust, LLC, LLC protection method.

Buy home and close in your name. Quit Claim and deed to Land Trust. Land Trust is managed by Holding LLC. Holding LLCs are then managed by Managing LLC. This is seperate from your Operating company and/or the business you promote. 1 trust per house. Depending on the price of the homes you may have up to 5 trusts per holding LLC, then up to 5 holding LLCs per managing LLC.

Asset protection companies are managed and operated seperately from your operating company.

Now there are many people out there promoting asset protection and their way is ALWAYS better then the competition. So don’t take the above as gospel. This is just what I was told and have been consulted on to form my entities. Every investor NEEDS to do their own due dilligence which is why I’m still reading up on these forums also. I think the ONLY reason you would use a trust in the first place is to “avoid the DOSC” triggered event. Using a Land Trust to avoid probate does NOT trigger the DOSC and may slip under the radar of a lending institution. Wendy Patton says that she sends a written certified letter to the lender when she takes a property Subject 2 and this is to provide another layer of protection for her if the bank suddenly decides to enforce the dosc the judge would see that she gave appropriate notice to the lender.

Well just some things to think about and I’m still researching this asset protection stuff also. I am 100% sure that you should run your operating company completely seperate from you asset protection corporations. Again your situation will vary.