I'm looking at private/hard money lending in the US after years of lending internationally. An opportunity has presented itself through a local title company and, according to them, their lenders do not typically request credit reports/scores from borrowers. They also require that the borrower borrow in an LLC, rather than their own name.
The potential borrower in this case asked if a personal credit report/score was needed for financing through an LLC. I'm not sure how many members are in her LLC.
Thoughts on this? Value/significance of running credit for a person if borrowing in an LLC?
Wholesaler · Dallas, TX · Member since 2017 · 306 posts · 133 votes
7y
Hello Hen! Banks always require that but it depends on what your lender wants. There are no laws on that. Some allow a transfer to an LLC right after, and some don't. It should be based on your experience. It's usually a safety net but not always a definite reflection. Good luck to you!