Needing an LLC for first time hard money?

[Victoria J.]

My husband and I are looking for funding for our first flip. We want to go the hard money route due to the fact that we don't have a lot of money and experience. The deals we are looking at are not too risky (for real estate, of course). Mostly cosmetic changes with super strong comps. But so far every hard money lenders have not been interested. We have been told that having an LLC would be helpful. We considered getting an LLC before we knew that financing would be difficult, but since we are only flipping at this point, the prevailing opinion on the forums was that as long as you don't intend on doing something fishy, it isn't necessary. So if not an LLC, what will help us get a hard money loan. We have limited funds (enough to put some down yes), no flip experience (subcontracting though), and solid deals. What else do we need?

[Nghi Le]

Oftentimes the LLC requirement is a lender's requirement, but sometimes it is a state requirement.

I believe VA is one of the few states that require you to take title in an LLC in order to get a hard money loan. Perhaps that's why all the lenders you've spoken to have mentioned it?