Any fix and flip lenders without LLC?

Question

Hi,

I've been looking to use financing on my next flip but it seems most of the lenders I've contacted (5 arch, etc) require me to have an LLC in Florida.

Does anyone have a lender that will lend personally for fix and flip (have 800 FICO, good income, etc)?

Don't want to deal with an LLC if I don't have to, will be easier to refi the rehab loan with a bank if it is under my name.

Thanks in advance!

Patrick Daniel · Answer

Husband and wife LLCs are still normally set up as a "single-member" since it is joint interest from the marriage. So that shouldn't be too big of a deal. But as always, don't take my word for it. Always consult the pros. We used Southeast Mortgage when we did ours. The hoops were just extra paperwork (LLC docs, I think they also wanted an itemized list of improvements and how much we spent on the rehab. Make sure with whichever lender you speak with that they are clear with how much of a seasoning period they want before you refi out.

Patrick Daniel · Answer

It is a requirement in Florida for hard money lenders to lend only to businesses and not to individual persons.

Have you looked into trying to find private lending or just creating an LLC? It is a fairly streamlined process, especially if you are going to be a single-member LLC.  When I have looked into moving a home from LLC (paid all cash) to financing the home in my personal name, my lender basically looked at it as a personally owned residence already since it was no an "arms-length" transaction. Granted there are a couple more hoops with the name on title changing.

Kerry Baird · Answer

In our situation, we needed a GC to use the FHA 203k, and I was project managing without a GC, so we used the HML instead.

Joshua Schoer · Answer

@Patrick Daniel

Thanks very much Patrick.

I've had an LLC in another state I've closed because it wasn't worth the hassle.

I guess I'll have to set up another LLC then for future flips if I'm taking out a loan.

Can I ask who your lender was that refinanced your loan?  What extra hoops did you have to jump through?  I'd probably have my wife on the LLC also just in case.

Thanks again

Any fix and flip lenders without LLC?

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