Can I use my own LLC to close on a loan? Alli Parkinson
No, you cannot use your own LLC to close on a loan.
We create a single purpose entity (SPE) for each property. This SPE is not a typical, general LLC, but is a specialized LLC for that property and loan transaction. The LLC also provides a shield of personal liability protection for the individual, which will operate the LLC to own and manage the property.
There is a fee associated with this, which covers the costs and fees associated with the preparation of the LLC organizational documents by an attorney, the expedited registration of the LLC, payment of state registration fees, the hiring and payment of the registered agent, obtaining the Federal EIN for the LLC, among other things. This fee is accounted for in the Advanced Deal Analysis and in the summary of each loan application.
Due to the specific nature of the requirements for this SPE, this is something that would have to be done through us. We would not be able to have another person do this work.
Check out our YouTube video: What Is a Single Purpose Entity
Did this answer your question?