Obtaining Mortgages Through An LLC????
I had read in a post somewhere that lenders will grant a loan to an LLC, but the interest rate will be higher and I will need to "personally garauntee it". Can you please explain what they mean by personally garaunteeing it? I don't have good credit and would not fair well in a credit check, but am looking for an in into real estate. Thanks.
Also, what makes the LLC so credible for the lender? Do you need to provide some proof of cash flow through the LLC? If so what do they look at exactly?
Johnathan,
Getting a loan in an LLC can be done both ways.
If it done on the LLC alone then, the bank does a credit check on the LLC. If the LLC has no credit file, then your credit would be used.
You don't always have to get a higher rate.
Lori
If using LLC, I always like to get 2 years tax returns and most recent P&L Statement.
[addsig]
Go to the lenders tab on this website or find a partner w/ better credit and use his/hers.