Can i get a hard money loan with an LLC with personal judgments?

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Can i get a hard money loan with an LLC with personal judgments?

Igor Rabinovich
Owings Mills, MD · Member since 2015 · 6 posts · 0 votes

Hi everyone, I'm new here. I'll have $12k to put into a rehab deal in a couple of months. I just wanted to know whether hard money lenders would do a deal with a first time investor through an LLC even though i have a couple of personal judgements.

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  • Peter M.
    Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
    8y

    How do you have 12k to put into a deal if you have personal judgments against you? If a creditor finds out you used money due them to buy real estate it could void the sale. But it depends on MD laws. 

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  • Igor Rabinovich
    OP
    Owings Mills, MD · Member since 2015 · 6 posts · 0 votes
    8y

    I'll have the $12k in a business account. To my understanding a creditor can't pursue assets that belong to an LLC in order to satisfy a personal debt in Maryland?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    8y
    Igor Rabinovich You can ask but when they run your credit and see personal judgments that will make it much more difficult - especially if the $ you have could pay those personal judgements.
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  • Account Closed
    New to Real Estate · Teaneck, NJ · Member since 2018 · 167 posts · 60 votes
    8y

    @Igor Rabinovich I agree with @Chris Seveney when they do the background and run your credit they will see the judgements why not pay them off. Or be upfront you might find a HL who will be ok with those if you have a plan to settle or bring everything to good standing. 

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