Hard money lender asking for LLC

[Ben M.]

I am a newbie and looking into getting my first rental property investment. I was not planning to sign up for an LLC but I was surprised my hard money lender requires this. Are all hard money lenders like this? What are the advantage/disadvantage? I am not sure how this will impact me...

[Account Closed]

Not uncommon at all.  Most hard money lenders will require ownership in an entity.  This is easiest way for lenders to establish the loan as being for a business purpose.