Most commercial real estate investors want to hold property in an LLC — and commercial lenders are perfectly comfortable with this. Here is what you need to know about getting a commercial real estate loan in your Texas LLC.
Why Hold Commercial Real Estate in an LLC?
- Liability protection — if a tenant or contractor sues, only the LLC’s assets are at risk, not your personal assets
- Estate planning — easier to transfer ownership interests without triggering a title transfer
- Multiple investors — LLCs make it easy to structure deals with partners and define profit/loss splits
- Tax flexibility — single-member LLCs are disregarded for federal tax purposes; multi-member LLCs can elect S-corp or partnership treatment
What Types of Commercial Loans Work for LLCs?
Hard Money Loans to Texas LLCs
Hard money lenders are asset-based — they lend to whoever controls the collateral. Lending to an LLC is standard practice. Personal guarantee is often required but not always. Close in 7-10 days.
Commercial Bridge Loans to LLCs
Short-term bridge loans for commercial acquisitions work seamlessly with LLC borrowers. The lender cares about the exit strategy and collateral value, not the entity structure.
DSCR Loans to Texas LLCs
DSCR lenders qualify based on property cash flow, not personal income, and they routinely lend to LLCs. The underwriting is identical whether you’re an individual or an LLC — the property either cash flows or it doesn’t.
Stated Income Commercial Loans for Texas LLCs
No-doc and stated income commercial loans can be made directly to an LLC or to an individual with a guarantee. Lenders use the property’s value and the guarantor’s credit profile rather than business income statements.
SBA Loans — LLC Considerations
SBA 7(a) and 504 loans can be made to LLCs. The SBA requires a personal guarantee from any owner holding 20% or more of the entity. The business must be an operating company (SBA loans are for owner-occupied properties, not investment real estate).
Documents Needed for an LLC Commercial Loan in Texas
- Certificate of Formation (filed with Texas Secretary of State)
- Company Agreement / Operating Agreement
- Certificate of Good Standing (current, from TX SOS)
- EIN confirmation letter (IRS Form SS-4)
- Personal ID for the guarantor(s)
- Property details: address, purchase price or value, lease agreements
For hard money and bridge loans, this is typically all that is required. DSCR and conventional commercial loans may ask for a rent roll, property financials, or recent appraisal in addition.
New LLC vs. Established LLC — Does It Matter?
For hard money, bridge, and stated income commercial loans, the age of your LLC is irrelevant. Lenders are underwriting the deal, not the entity’s operating history. A Texas LLC formed the same week as your closing is perfectly acceptable.
For SBA loans, the business needs to be operational, which matters more for 7(a) loans on owner-occupied property.
Single-Member vs. Multi-Member LLC
Commercial lenders treat both the same for qualification purposes. The key difference: on a multi-member LLC, each member with 20%+ ownership typically signs a personal guarantee. For a 50/50 partnership, both partners guarantee. This protects the lender regardless of internal ownership splits.
Ready to Get a Commercial Loan for Your Texas LLC?
Commercial Loans of Texas has been lending to Texas LLCs since 1998. Tell us your deal — property type, location, loan amount, and LLC structure — and we will match you with the right program. No upfront fees, no red tape.
Call 877-895-3634 or apply online today.