Many real estate investors hold investment properties through LLCs or other business entities. Business-purpose investment-property lenders commonly accommodate eligible entity ownership, but documentation requirements vary. Landlord Lending works across multiple investment-property lenders, so exact eligibility, leverage, pricing, documentation and other guidelines vary by lender, program, property and overall transaction strength.
Why Investors Use LLCs
Real estate investors often use business entities for ownership, operations, partnership structure or liability planning. Legal and tax decisions should be made with qualified professionals.
Can an LLC Borrow?
Many business-purpose investment-property lenders can lend to eligible LLCs, but entity eligibility and guaranty requirements vary.
Entity Documents
Lenders may request formation documents, operating agreements, ownership and member information, authorized signers and state certifications.
Personal Guaranties and Credit
Most investment-property programs require personal guaranties from eligible members or principals. Credit and background of guarantors are commonly reviewed.
Title and Vesting
The intended vesting structure should be communicated early. Title, insurance and loan documents need to align with the approved borrowing entity.
LLC Financing Beyond DSCR
LLCs may use DSCR, rehab, bridge, construction and other investment-property programs depending on lender eligibility. Program and guaranty requirements vary across loan types.
How Landlord Lending Helps
Landlord Lending helps real estate investors evaluate financing based on the property and business plan, then identify appropriate options across its lender network. The objective is to align the capital structure with the acquisition, rehab, construction, refinance or hold strategy rather than force every deal into one program.
Explore the DSCR Loan to Buy and Buy and Rehab Loan and Bridge Loan to Buy.
Related: Can You Get a DSCR Loan With an LLC? · Investment Property Loans: The Complete Guide
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Request Loan TermsFrequently Asked Questions
Can an LLC get an investment property loan?
Many business-purpose lenders finance eligible LLC borrowers, subject to program and guarantor requirements.
Does an LLC avoid a personal credit review?
Not necessarily. Many lenders review the credit and background of guarantors or principals.
Can an LLC use DSCR, rehab and bridge loans?
Potentially, depending on the lender and program.