Re: Loans to newly formed LLC - Posted by Jim Rayner
Posted by Jim Rayner on August 25, 2003 at 18:42:05:
Putting it bluntly you are way to new an LLC to get a bank loan without the partners’ personal guarantees. Matter of fact I, after 7 years, still have to provide personal guarantees to loans made to my LLC. I don’t think the day will come when this will not be a requirement but its not really a big issue. It took us two years to build the credit rating of our LLC to the point where we are just closing a 2.8 Million deal through the LLC.
The issue of separate notes on each property is really one where you need to answer the question of: What is going to be our investing statergy and how does the issue of the financial structure play out in our proposed business plans.
How you will leverage yourself is also an important issue that again depends on your proposed business statergy. There is no one general rule of thumb for these issues.
To have your LLC build credibility within your local lending community you need to develope a business plan. That plan needs to be well organized, well thought out, and properly presented. You need to have that in hand as you begin the process of building those vital relationships with your local lenders.
An archive search on business plans here in financing forum as well as in the commercial forum would be very enlightening for you. Additionally an archive search in the commercial forum on building banking relationships should be equally enlightening.
hope this helps