Shareholder in LLC
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Anonymous
| I am a 10% shareholder of an LLC with assets of 10 million. Is this holding able to be counted as an asset for mortgage qualification purposes? |
Anonymous
| Does it have liabilities too? |
Anonymous
| No liabilities- so my equity is 1m |
Anonymous
| If the assets are liquid, then yes. When I got my latest loan, we included the value of the bank and brokerage accounts of my company in the asset listing. |
Anonymous
| I couldn't but my assets were essentially work in process and accounts receivable which would turn in to future income and my income was already being counted. |
Anonymous
|
It is not a simple answer---a minority interest (which is what a 10% stake is) is typically discounted for valuation purposes. Is your 10% interest freely transferable or permitted to be pledged as collateral? (most private LLCs typically have transferability restrictions of some sort).
Put another way, that potential $1M of collateral isn't very meaningful to a lender if the lender has no way of accessing that value. |