Buying investment property in your personal name is a rookie mistake. It exposes your personal assets (home, savings, car) to liability if a tenant sues you. Smart investors buy in an LLC (Limited Liability Company) to create a corporate veil.
The Policy Gap
Traditional banks often make this difficult, requiring 2 years of tax returns for the LLC or forcing the loan into a personal name.
The Fix: Entity Lending
We lend directly to the Entity. At Investor Underwriting, we lend to brand-new LLCs with zero days of seasoning.
“We do not require the LLC to have history,” says Heather Sharpe, Closing Specialist. “You can form the entity yesterday and we will fund it tomorrow.”
Our underwriting logic focuses on the Personal Guarantee (PG); we are underwriting the human operator’s credit and experience rather than the financial history of a corporate shell. This approach allows us to support local growth, such as recent projects we’ve spearheaded in Gwinnett County through the Southern Legacy Fund.
Tell your investors to form the entity before the offer. It signals to the seller: “This is a business transaction.”
The Strategy
Your LLC is a shield for your assets, not a wall for your capital. As long as the operator checks out, the entity’s age is irrelevant.
Are your clients buying in their own names? Stop them.
Email me at Heather@InvestorUnderwriting.com to learn how easy it is to close in an LLC with Investor Underwriting.
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