Title and LLCs

Comments(5)

• 
  KEA13th June, 2003

  syedaf,
  
  Welcome to TCI!
  
  I'm in basically the same predicament you're in. All my research points to arranging the financing in your own name, but sign the closing documents as a representative of the LLC. (i.e. Bill Smith, President, ABC Asset Management, LLC)
  
  In other words, you'll have to PERSONALLY guarantee the financing. Note: This makes you personally liable! Most banks will not loan money to a new LLC with no track record of cash flow or credit. However, you should be able to take title under your LLC for asset protection.
  
  This may not be 100% of what is required, but I believe it is close. Anyone else at TCI University have some insight on this?
  
  
  [addsig]

• 
  syedaf13th June, 2003

  Hi
  
  Thanks for the reply. I have been able to secure the financing for my first condo with Title in the name of the LLC. But it seems that it is impossible to get the equity out for the second unit. The resistance I have faced while trying to get the equity just because the Title is in the name of LLC, made me question the whole thing. Any more thoughts on this, so far it seems that there is no easy way to get financing may it be a mortgage or line of credit under an LLC. Thanks

• 
  joeinvestor24th June, 2003

  I have been doing everything in my own name, but recently formed an LLC to start transacting business, so I will probably be experiencing this problem.
  I would love to chat live with anyone interested, you can email me directly at
  **Please See My Profile** and we can schedule time to chat on the phone...thanks

• 
  roztom24th June, 2003

  While you should always consult counsel, I don't know of any bank who will give up recourse to you personally but at closing, title can be transferred to your LLC for liability protection from lawsuits, etc . I believe this is where the advantage is.
  [addsig]

• 
  rajwarrior24th June, 2003

  A newly formed business (LLC, Corp, etc) is just like a person fresh out of High School, full of enthusiasm, but with no money or credit file. Banks wouldn't loan to them anymore than they will to your new company.
  
  But if you personally have good credit, you can 'vouch' for the company by becoming a co-borrower. As your business establishes itself as a good payor, banks will eventually begin offering money to the company directly.
  
  Roger