Can I borrow through an LLC instead of my personal name?

Yes. Veristone Capital regularly funds loans where the borrower is an LLC or other business entity. In fact, most of our investors hold investment properties in an LLC for liability protection. The loan is made to the entity, and the property is vested in the entity's name at closing.

Do I need to provide a personal guarantee?

Yes. Veristone Capital requires a personal guarantee from all managing members or principals of the borrowing entity. This is standard practice in private lending and ensures that the individuals behind the entity stand behind the loan obligation.

How do I set up an LLC for real estate investing?

You can form an LLC by filing articles of organization with the Secretary of State in your chosen state. Most investors also draft an operating agreement that outlines ownership, management structure, and decision-making authority. We recommend working with a real estate attorney or CPA to ensure your entity is set up properly for your investment strategy.

Can I use an existing LLC to take out a loan?

Yes. If you already have an LLC in good standing, you can use it as the borrowing entity. We will verify that the entity is active, properly registered, and authorized to conduct business. If your LLC has been used for prior investments, that history can work in your favor during underwriting.

What entity documents does Veristone Capital require?

We typically require the articles of organization, operating agreement, EIN confirmation, and a certificate of good standing from the state of formation. If the LLC has multiple members, we may also need a borrowing resolution authorizing the loan. Having these documents ready before you apply speeds up the closing process.

Does the LLC need to be registered in the same state as the property?

Not necessarily. Your LLC can be formed in a different state than where the property is located. However, the entity may need to register as a foreign LLC in the property's state to legally conduct business there. Check with your attorney or the state's Secretary of State office to confirm requirements.

What are the benefits of borrowing through an entity?

Borrowing through an LLC or entity separates your personal assets from your investment properties, which provides a layer of liability protection. It can also simplify tax reporting, make it easier to bring in partners, and create a cleaner ownership structure if you hold multiple properties. Most experienced investors prefer this approach.

Can multiple members of an LLC be on the loan?

Yes. If your LLC has more than one managing member, all members with significant ownership will typically need to sign the personal guarantee. Veristone Capital evaluates the experience and financial strength of all guarantors when underwriting the loan.

What Investors Ask About Borrowing Through an LLC or Entity

Many real estate investors choose to borrow through an LLC or other entity for liability protection and tax flexibility. Below are the most common questions we receive from borrowers looking to structure their loans through a business entity with Veristone Capital.

Can I borrow through an LLC instead of my personal name?: Yes. Veristone Capital regularly funds loans where the borrower is an LLC or other business entity. In fact, most of our investors hold investment properties in an LLC for liability protection. The loan is made to the entity, and the property is vested in the entity's name at closing.
Do I need to provide a personal guarantee?: Yes. Veristone Capital requires a personal guarantee from all managing members or principals of the borrowing entity. This is standard practice in private lending and ensures that the individuals behind the entity stand behind the loan obligation.
How do I set up an LLC for real estate investing?: You can form an LLC by filing articles of organization with the Secretary of State in your chosen state. Most investors also draft an operating agreement that outlines ownership, management structure, and decision-making authority. We recommend working with a real estate attorney or CPA to ensure your entity is set up properly for your investment strategy.
Can I use an existing LLC to take out a loan?: Yes. If you already have an LLC in good standing, you can use it as the borrowing entity. We will verify that the entity is active, properly registered, and authorized to conduct business. If your LLC has been used for prior investments, that history can work in your favor during underwriting.
What entity documents does Veristone Capital require?: We typically require the articles of organization, operating agreement, EIN confirmation, and a certificate of good standing from the state of formation. If the LLC has multiple members, we may also need a borrowing resolution authorizing the loan. Having these documents ready before you apply speeds up the closing process.
Does the LLC need to be registered in the same state as the property?: Not necessarily. Your LLC can be formed in a different state than where the property is located. However, the entity may need to register as a foreign LLC in the property's state to legally conduct business there. Check with your attorney or the state's Secretary of State office to confirm requirements.
What are the benefits of borrowing through an entity?: Borrowing through an LLC or entity separates your personal assets from your investment properties, which provides a layer of liability protection. It can also simplify tax reporting, make it easier to bring in partners, and create a cleaner ownership structure if you hold multiple properties. Most experienced investors prefer this approach.
Can multiple members of an LLC be on the loan?: Yes. If your LLC has more than one managing member, all members with significant ownership will typically need to sign the personal guarantee. Veristone Capital evaluates the experience and financial strength of all guarantors when underwriting the loan.

Tim Mushen

VP of Marketing and Technology

Disclaimer: Veristone Capital does not provide legal or financial advice. The information on this page is for general informational purposes only and should not be construed as legal, financial, or tax advice. Consult a qualified attorney, accountant, or financial advisor to evaluate your specific situation before making any investment or lending decisions.

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What Investors Ask About Borrowing Through an LLC or Entity

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