Property in my name but hard money in LLC?
Member since 2022 · 70 posts · 21 votes
Property in my name but hard money in LLC?
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Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
3yNo 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.
12 Replies
- Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes3y
Quote from @Elizabeth Park:
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?
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. . .
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.
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
The Hard Money Lender will want the property deeded in your LLC.
- Member since 2022 · 70 posts · 21 votes3yThank you for the help! I’m just confused if it’s even possible to get a loan under LLC and buy the property under my name?
Quote from @Account Closed:
Quote from @Elizabeth Park:
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?
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. . .
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.
- 3yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Elizabeth Park:
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?
You may finance a property under a personal name with a hard money loan. Shop around! Happy to connect.
LuxePrivate Investments LLC 572 Reviews - Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes3yI don't know of anyone doing that.
Quote from @Elizabeth Park:
Thank you for the help! I’m just confused if it’s even possible to get a loan under LLC and buy the property under my name?Quote from @Account Closed:
Quote from @Elizabeth Park:
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?
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. . .
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.
- Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes3y
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.
- Lender · Jacksonville, FL · Member since 2023 · 108 posts · 6 votes3y
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.
- Member since 2022 · 70 posts · 21 votes3y
Quote from @Account Closed:
Quote from @Elizabeth Park:
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?
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. . .
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.
I am not able to use our existing LLCs because we are using them for a different purpose. Thank you for the info.
- Member since 2022 · 70 posts · 21 votes3y
Quote from @Caroline Gerardo:
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.
Thank you! This is the answer I was looking for.
- Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes3yAbsolutely not.
You can buy it in your name and then transfer the property to the LLC. Then after transferring it to the LLC finance it as owned by the LLC
You can’t finance it in the LLC if the LLC does not own the property. - Member since 2022 · 70 posts · 21 votes3y
Quote from @Ned Carey:
Absolutely not.
You can buy it in your name and then transfer the property to the LLC. Then after transferring it to the LLC finance it as owned by the LLC
You can’t finance it in the LLC if the LLC does not own the property.Thank you for the clarification.
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