Forming LLC for Hard Money Borrowing

[Presley Grooms]

Hello all,

I am looking to do my first BRRRR investment and the plan is to use a HML to fun most of the purchase + rehab. Of all the HMLs that I've spoken to, they all require a business entity to be formed. I understand this is due to Dodd-Frank restrictions, etc. After the rehab and seasoning period is over, what is the best way to refi under a conventional mortgage? I know most conventional lenders won't lend to an entity so what should be done to make this all work?

I haven’t found this exact topic in the forums but if anyone knows of one, please point me there.

Thanks in advance!

[Scott Wolf]

@Presley Grooms, you should start preliminary conversations with your local banks about what you're trying to do. They may lend to LLC's, as I purchased a property in an LLC for rental purposes, and a local bank financed it.