Mortgage Lending into an LLC with Personal Guarantee

I bought a single family home in Arizona last year to take advantage of the distressed market. I bought it all cash through my LLC (owned by my wife and I). I now want to tap some money out of that property to pay down debt in the LLC or do other acquisitions within the LLC. I would rather not pull the property out of the LLC to do this. I am willing to do a personal guarantee on this. Any recommendations on who might do this.
In Buying Property - Asked by Jeff H. - Jan 5, 2009
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Answer(s)

Chris S.
Broker/Agent
Coeur D'alene, ID

Second home refinancing is a little more limited now. Pretty much any lender will take a look at the deal, but it will come down to their specific lending guidelines and your income. They always want to see a particular debt coverage ratio. If you have it they will make the loan, if you don't they won't.
Expect a lower LTV and possibly higher interest rate because of the second home status. There should be no difference in the rates just because you have an LLC. However, you also need to know that the personal gaurantee will eliminate some of the protection you have through an LLC.

Jan 5, 2009
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Gary S.
Owner/Investor
San Antonio, TX

I agree with Chris, but with one twist. If you are a true LLC and have completed the proper steps to build a paydex score through your DUNS number. Then your LLC entity has legs to stand on it's own and the PG isnt required.

Jan 6, 2009
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