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What lender/lenders will finance houses for a real estate investment company organized as an LLC?


I have had an individual ask me if I can help him buy and finance houses in an LLC. He has found several investors willing to put up the money to buy dozens of homes a year, but no one individual member of the LLC wants to be the personal guarantor. I've heard that there are some hard money loans out there for something like this. If this is my only route, how do I go about finding them?

If the principal members of the LLC will not act as guarantor, then there isn't a professional lender on Earth who will carry the credit. In any business, except the largest ones, principal officers must guarantee the loan so that if they misuse the funds the institution can go after them personally. It forces good behavior, or permits attacking the assets of the officers if they do not.

It is my understanding that residential property must be purchased in the mortgagors name, then you can transfer the property to an LLC.

As OPM pointed out, lenders are going to want personal guarantees from the LLC members. You may be able to negotiate with that lender and limit the guaranty, though, via a liability cap or other device.

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