Financing in 91101>Question Details

newinvestor, Real Estate Pro in 91106

Lending to LLCs and LPs

Asked by newinvestor, 91106 Mon Mar 8, 2010

My friends and I formed an LLC to invest in income properties. We are currently trying to get a commercial loan for an 8-unit apartment. The lender told us that even if all members signed on the loan, the loan would only show up on the the credit report of the member designated as the "primary contact". In other words, the loan wouldn't impact the borrowing capacity of other members. Does this sound right? Thanks!

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One of the officers in the LLC needs to personally Guarantee the loan. It wouldn't be referred to as Primary contact but a personal Guarantee by that member. I hope your partner understands that becuase it could affect his purchasing power on personal real estae. You can call me if you have any othe questions.

Edward Uriarte
Loan Consultant
1 vote Thank Flag Link Mon Mar 8, 2010
I would ask for this in writing. Most servicers put the loan on ALL the borrowers credit. If you are dealing with a smaller local bank - this may be correct.

Better to be sure in advance - get it in writing!

Good Luck!
0 votes Thank Flag Link Tue Mar 9, 2010
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