Hard money loan for individuals? (not LLC)

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Hard money loan for individuals? (not LLC)

Sean Haran
Los Angeles, CA · Member since 2023 · 22 posts · 53 votes

Hello, I’m looking at a deal that would be perfect for a hard money loan, and I’d rather use someone else’s money rather than my own to get this done. I made an offer which (according to my realtor) is about to be accepted today or tomorrow. 

All of the hard money loan options I've found require me to borrow in an LLC, which I don't have now. Since I am literally about to start the process of buying this property I doubt I have enough time to set up an LLC for the loan. Is there any hard money lenders who lend to individuals rather than an LLC?

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y

@Sean Haran

We have lent to individuals and not LLc’s but have additional affidavits for non owner occupied that must be executed

7e investments53 Reviews
WebsiteView Page
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  • Logan Singleton
    Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
    2y

    Hi Sean, 

    Yes a handful of HMLs on BiggerPockets will allow you to borrow in your own name. I'm a little confused by your comment about using someone else's money since even HML's will require you to have a down payment typically 10-20% depending on the loan scenario. Please let me know if you have any additional questions.

    0Reply
  • Sean Haran
    OP
    Los Angeles, CA · Member since 2023 · 22 posts · 53 votes
    2y
    Quote from @Logan Singleton:

    Hi Sean, 

    Yes a handful of HMLs on BiggerPockets will allow you to borrow in your own name. I'm a little confused by your comment about using someone else's money since even HML's will require you to have a down payment typically 10-20% depending on the loan scenario. Please let me know if you have any additional questions.

     Thank you! And yes you are correct, I should have said “mostly other people’s money” as I do know I will have to put some of my own capital into the deal. But I’d prefer to put a little of my own money in rather than a lot of it :)

    0Reply
  • Logan Singleton
    Lender · Boston, MA · Member since 2023 · 415 posts · 95 votes
    2y
    Quote from @Sean Haran:
    Quote from @Logan Singleton:

    Hi Sean, 

    Yes a handful of HMLs on BiggerPockets will allow you to borrow in your own name. I'm a little confused by your comment about using someone else's money since even HML's will require you to have a down payment typically 10-20% depending on the loan scenario. Please let me know if you have any additional questions.

     Thank you! And yes you are correct, I should have said “mostly other people’s money” as I do know I will have to put some of my own capital into the deal. But I’d prefer to put a little of my own money in rather than a lot of it :)


     Can you tell me a little bit about the project you have in mind to see if we could potentially assist?

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Sean Haran

    We have lent to individuals and not LLc’s but have additional affidavits for non owner occupied that must be executed

    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 131 votes
    2y
    Quote from @Sean Haran:

    Hello, I’m looking at a deal that would be perfect for a hard money loan, and I’d rather use someone else’s money rather than my own to get this done. I made an offer which (according to my realtor) is about to be accepted today or tomorrow. 

    All of the hard money loan options I've found require me to borrow in an LLC, which I don't have now. Since I am literally about to start the process of buying this property I doubt I have enough time to set up an LLC for the loan. Is there any hard money lenders who lend to individuals rather than an LLC?

    Depending on the specifics including the state, we have assisted individual in their name. As Chris mentioned, it may require additional documentation. 
    0Reply
  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi Sean,

    There are programs out there for individual vesting. If you want to pursue the LLC route, you can actually expedite the process (pay a little more) and get it filed within a week. Either would work!

    310-848-9776
    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y

    You can close in a personal name with a hard money loan, but it will depend on the state and lender. Happy to connect!

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Katie Smith
    Member since 2023 · 348 posts · 190 votes
    2y

    Hi Sean! Do you prefer to have the purchase in your personal name or an LLC? There are lenders that do not require seasoning on the LLC, and like someone else mentioned, you can pay a little extra to expedite the process. Depending on how long you have to close, you can definitely go the LLC route if that's preferred.

    0Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 657 posts · 319 votes
    2y
    Quote from @Sean Haran:

    Hello, I’m looking at a deal that would be perfect for a hard money loan, and I’d rather use someone else’s money rather than my own to get this done. I made an offer which (according to my realtor) is about to be accepted today or tomorrow. 

    All of the hard money loan options I've found require me to borrow in an LLC, which I don't have now. Since I am literally about to start the process of buying this property I doubt I have enough time to set up an LLC for the loan. Is there any hard money lenders who lend to individuals rather than an LLC?


    Sean,

    There are some lenders that are okay with closing in your individual name, and some that will do a rate adder if you do, and some that can only do it in certain states. Connecting with the right one would be a big part of it, on top of finding the right, cash-flowing property of course.

    Happy to connect and help if you would like!

    [email protected]417-427-2612
    0Reply
  • Brandon Croucier
    Lender · Lake Havasu City, AZ · Member since 2024 · 700 posts · 285 votes
    2y

    Whatever you would like to do we can close in your personal name or an LLC.

    Would love to connect and see what the scenario looks like.

    0Reply
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