Most Texas real estate investors hold their commercial properties in a limited liability company for liability protection and tax efficiency. Commercial Loans of Texas lends to LLCs regularly — here is what you need to know about the process.
Can an LLC Get a Commercial Loan in Texas?
Yes. Commercial real estate loans to LLCs are completely standard. Banks, hard money lenders, DSCR lenders, and private capital all fund LLC entities. The documentation requirements and qualification criteria differ depending on the loan type, but your LLC structure will not prevent you from getting financed.
What Lenders Require for LLC Commercial Loans
- Articles of Organization — Proof the LLC was properly formed with the Texas Secretary of State
- Operating Agreement — Shows who has authority to sign loan documents on behalf of the LLC
- EIN (Employer Identification Number) — The LLC’s federal tax identification number
- Certificate of Good Standing — Confirms the LLC is current and active with the State of Texas
- Personal guarantee — Most programs require at least one member to personally guarantee
Personal Guarantee: What It Really Means
Even when the loan is made to your LLC, most lenders require the principal members to personally guarantee the debt. This means if the LLC defaults, the lender can pursue the guarantors personally. Non-recourse loans exist — typically limited to larger CMBS deals — but most Texas commercial loans require a personal guarantee.
Hard Money Loans for Texas LLCs
Hard money lenders are by far the most LLC-friendly. They focus on the property value and equity, not the LLC’s financial history. A brand-new LLC formed last week with no financial track record can still get a hard money loan. The property is the collateral — that is all that matters.
DSCR Loans for LLCs
DSCR (Debt Service Coverage Ratio) loans qualify on the property’s rental income, not personal income. Your LLC holds the property, the property generates rent, and the rent covers the loan payment. No personal tax returns from any member are required. This is the ideal structure for buy-and-hold investors operating through LLCs.
Bank Loans for LLCs
Banks want the LLC to have at least 2 years of operating history with documented income. A new LLC buying its first property typically cannot qualify at a bank. Banks also require personal financial statements, tax returns for all guarantors, and extensive documentation of the LLC’s business activity.
Series LLCs in Texas
Texas allows series LLCs — a single master LLC with separate series for each property. Lenders generally accept series LLC borrowers, but most require the specific series (not just the master LLC) to be on the loan documents. Some lenders require the series to have its own bank account and operating history.
New LLC vs Established LLC
For hard money and DSCR loans, a new LLC is not a problem. For SBA or conventional bank financing, most lenders want 2+ years of LLC operating history. If you have a new LLC, start with hard money or DSCR and refinance into conventional financing after 12–24 months.
Get a Commercial Loan for Your Texas LLC
Call Commercial Loans of Texas at 877-895-3634. We work with Texas LLCs at every stage — new entities acquiring first properties, and established holding companies with large portfolios. No upfront fees. No tax returns on most programs. Same-day LOI.