Do Bridge Loans or Private Lending Only Lend to LLC Entities?

[Ruchir Kaul]

Hi Everyone,

I have a property I'm interested in Indianapolis but running into an issue with funding. This one is an off-market deal that is currently tenant occupied rented in a month to month lease. However the current rental rate is about 150-200 lower than the market rental value for the area. The plan is to purchase and raise rental prices gradually and come in to do the rehab once tenant leaves - estimating just about 10-15K in repairs - this should get top rent prices afterwards. This sort of falls into the category of a delayed BRRRR strategy.

I'm looking to get a bridge loan or private lending to fund the initial acquisition. However I was told that they are only able to lend to entities. Is this usually the case for this type of lending? Do I need an LLC formed usually prior to getting funding? I haven't done lending outside of conventional lending so this is all new territory to me! Any thoughts or feedback would be much appreciated!