Hello! We are brand new to REI and looking into lending options (private money/hard money, etc.) to begin purchasing, rehabbing & selling SFR's in this area (ABQ/RR). A local lender emailed us in response to our inquiry and indicated that private money lenders do not lend to individuals, only an LLC.
Is this true across the board? I am a general contractor with a sole proprietorship and plan to do all the work myself.
Thank you in advance for any information!
Jason, it depends on the lender. The hard money guy I used for one of my projects required an LLC and a track record of successful projects. A lot of the "hard money" people are coming out of Guru's boot camps and have pretty stringent guidelines as they are not generally lending their own money.
With Private Money you have a lot more flexibility, but you should consult with a local attorney to ensure you protect yourself and your lender.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.