I've talked with several hard money lenders and they are all telling me they won't loan to individuals, only LLC's.
So, I just got my LLC. Do I need an EIN number for my business now? How about a business bank account and credit card. Is this just a way of separating my personal assets from my business entity assets?
@Ian Tvardovskaya Thanks for your reply. That is what I was thinking but, being a newbie, it's nice to have the confirmation.
@Karen Warren HMLs don't follow the Frank Dodd conventional disclosure and regulatory requirements, and therefore are prohibited from lending on an individual's primary residence. The entity requirement is one more layer of protection for them to show that they are, in fact, only lending on business purpose loans.
@Jason Hirko Thank you, Jason. That makes sense.
LOL I said Frank Dodd... I mean Dodd-Frank
@Jason D. Really? Which ones are they?
@Jason D. Thanks.
While it's true that HMLs can lend to both individuals and entities, you might be investing in a state that restricts HMLs to only lend to an entity. I know that LendingHome does consider NC to be an "Entity Only" state.
@Jason D. LendingHome also classifies FL as an "Entity Only" state as well, although it might only be in Dade County.
@Nghi Le Interesting.
@Karen Warren Many Hard Money lenders will loan to an LLC and not an individual but they will underwrite the members of the LLC.