Partnership and Loans?

**jjangraw** · 08-09-2008, 10:12 AM

I am trying to form a partnership (or some form of group) between some friends of mine to invest in larger projects. We have already done a few all-cash complicated deals in foreign countries so it isn't a matter of trusting one another or working together.

My question is: what does a loan look like if it is applied for by 3+ unrelated people formed together in a partnership? Do they look at everyone's income? Is everyone personally liable?

Thanks for any help,

jjangraw

**jamesww** · 08-09-2008, 11:25 AM

The lender will want a personal guarantee of the loan by each of the owners. But, the loan can be issued in the name of the partnership. I would form a LLC.

**creativecommercialcapital** · 08-09-2008, 06:29 PM

Hi Banks will really put you through the ringer. you will give everything they need and still during today's times they may not want the deal. One or more of your partners will have to guarantee. Not sure if everyone will be on that guarantee. That depends on net worth and credit and of course if only one of your partnership is ok with signing.

If its a large project let us know
thanks
Kent

**jjangraw** · 08-11-2008, 03:28 AM

Thanks for the answers. If you form an LLC does it make a difference with the money or is it just better for liabilities, etc?

We are all fine with being liable in our deals.

Thanks for answering the questions!

**creativecommercialcapital** · 08-11-2008, 06:55 AM

Usually the LLC will be good for liability for everything but a Bank loan or a Hard loan. For Example if you are running a company and you purchase merchandise and open an acct with a supplier. You are most likely to be protected by any debt for these types of things. However with Banks and Lenders they will want some type of personal guarantee before getting involved - Especially today. Depending on the amount of course. Sometimes it can be tricky but all the hard lenders are going to want some protection. If they love the deal and its a great investment everyone should be happy.
thanks
Kent

**Marcy** · 11-17-2008, 12:01 PM

Hi there,
My name is Marcy and working as a real estate agent in Ottawa. To my knowledge, when you form your business as a partnership you have to decide what type of investment business you want to have. If it is registered as a corporation you are not lieable for debts. I can provide you more information if you like. Please let me know.