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Updated over 6 years ago on . Most recent reply

Ben M.'s profile image
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Ben M.
  • from Houston, TX
  • Member since Jun 24, 2015
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Ben M.'s profile image
Ben M.'s profile image
Ben M.
  • from Houston, TX
  • Member since Jun 24, 2015
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Ben M.
  • Houston, TX
46
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297
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General Landlording & Rental Properties

Hard money lender asking for LLC

Ben M.
  • Houston, TX
Posted

I am a newbie and looking into getting my first rental property investment. I was not planning to sign up for an LLC but I was surprised my hard money lender requires this. Are all hard money lenders like this? What are the advantage/disadvantage? I am not sure how this will impact me...

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Account Closed's profile image
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Account Closed
  • Lender
  • from Los Angeles, CA
  • Member since May 11, 2015
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Account Closed
  • Lender
  • from Los Angeles, CA
  • Member since May 11, 2015
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Account Closed
  • Lender
  • Los Angeles, CA
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Account Closed
  • Lender
  • Los Angeles, CA
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Not uncommon at all.  Most hard money lenders will require ownership in an entity.  This is easiest way for lenders to establish the loan as being for a business purpose.

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