Help understanding private money lender requirements

[Tabitha J.]

To get private money lenders, do I have to establish a real estate business first? Such as getting a website, business cards, business name, mission statement etc? I would like to do this part-time to meet my personal goals. I don't want to make a business out of it. Can I still use private money lenders? Will this make things more challenging?

Thanks!

[Anthony Dadlani]

@Tabitha J. When making the purchase , an LLC can be established and property purchased under that entity. The private lender will then be making a loan to the LLC with a lien on the property. Thats how most lenders work. In most states private lenders cannot make loans to a homeowner directly without a mortgage banking license. Hence when homes are purchased with an LLC its considered a business loan.

I hope that adds some clarification. 

Best of luck in all your endeavors