Property in my name but hard money in LLC?

Question

I am buying a property under my name and planning to transfer to an LLC later but my hard money lender says I have to borrow under an LLC. I have not set one up yet for this property. I do have an LLC that is not associated with this property I am buying. What should I do? If they lend to an LLC but I am buying with my name, this transaction will still happen in purchasing a home?

Eliott Elias · Answer

The Hard Money Lender will want the property deeded in your LLC.

Caroline Gerardo · Answer

No you cannot put the title (vesting) in a different name or entity than the loan, they need to match.

Hard money wants only NON owner occupied. Some hard money want the title in a LLC (not all) and you sign a personal guarantee. Signing the guarantee means they can disclose it on your credit report especially if you don't pay as agreed.

Account Closed · Answer

What they are saying, is if you insist on borrowing in your name, they won't do the loan at all.

Why not borrow and buy under your existing LLC?

Here's a post I did on LLCs that may help

DO You Need An LLC - It Gives Me Protection, Right? My Attorney / CPA Says That. . .

https://www.biggerpockets.com/forums/311/topics/1098136-do-you-need-an-llc-it-gives-me-protection-right-my-attorney-cpa-says-that

All my REIs are in an LLC! Why am I being personally sued?

https://www.biggerpockets.com/forums/926/topics/1097903-all-my-reis-are-in-an-llc-why-am-i-being-personally-sued

I suggest one of the LLCs is the one used to open a bank account and run all related income & expenses through it to avoid the accusation of commingling funds, to be able to write checks and to send and receive wire transfers. The IRS will appreciate it when they audit you.

Elizabeth Park · Answer

Thank you for the clarification.

Robert Jay · Answer

What type of hard money loan is the hard money lender providing?

Listed below is what I am currently offering on private money financing:

DSCR = 8.25% 30 years fixed.

No Ratio = 9% to 10.99% on residential investment properties (1-4 units). 10.99 for 5+ unit commercial multifamily. 30 years fixed.

Fix and Flip = 10.99% 12 month term with option to extend.

Stabilized Bridge Loan = 10.99% 12 month term with option to extend.

Erik Estrada · Answer

You may finance a property under a personal name with a hard money loan. Shop around! Happy to connect.

Elizabeth Park · Answer

Thank you! This is the answer I was looking for.

Elizabeth Park · Answer

I am not able to use our existing LLCs because we are using them for a different purpose. Thank you for the info.

Property in my name but hard money in LLC?

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