When first starting an LLC is it possible to get a loan without being personally responsible for the loan? Let’s say the LLC owns two properties and one is put up as collateral for the loan, will a bank agree to give the loan?
Also, is it better to use a mortgage broker, that way he has something to gain by getting you a loan?
No bank will loan on a LLC without someone guaranteeing the loan. Some banks will loan 40% of the FMV of the property if the property is free and clear and in your name not a LLC. The banks are very up to date on LLC because if anything went wrong and the loan go south the LLC will shut down and run around the corner and start over, it would not be that easy if your personal name is attach to it.
I’ve been doing this for several years now and our LLC owns literally dozens of properties. We still sign papers every time to personally guarantee the loan.
We’ve never used a mortgage broker. We just deal with the banks directly.
Hi,
I have been able to get "Non Recourse" without guarantee but only through "Hard Money" or "Private Money" lenders!
GR