Why LLC vs Personal Name?
A Topic, I would like seeing discuss, is why an individual with more than 5 properties is force to finance in LLC vs Personal name? Its a scam they do not care about the property value and only care about their borrowed amount. I see it in the insurance documents. The dwelling is only 5-10k more that what the loan is for but general liabilities is 1 million bucks. What that means is if something happens to the physical home, you are screw. I planned on paying these guys before their first payment is dues and eat the 3 points. Another area of concern is, you have some lender keeping your rehab money in escrow and wants to draw interest why the hold the funds. Believe m, a lot of other lenders charge interest only on borrowed funds, look around before closing a deal. I think its disgusting to keep the funds and charge interest. I spoke to my lawyer about this issues and he said just find another lender that will charge interest for what's borrowed.
New investors, do some basic due diligence, call 10 or 20 HML with all your questions before closing on these loans, Lenders will say anything to get the deal across the line but you and your money is at risk. I will start listing bad hard money/Good Hard Money lenders by name on this platform. Something like the pros/cons.