Transfer property to LLC to obtain hard money loan?

[Harold Rutila]

Hello BP Community,

I purchased a vacant home as an investment property in cash last fall. The acquisition cost was $75,000. The ARV is roughly $220,000. I have located a great contractor to do an exterior renovation but am likely going to need a hard money loan to fund it. The exterior renovation will be roughly $50,000.

As of now, the property is in my name. I understand hard money lenders will typically only lend to LLCs. I have an LLC already set up and could transfer the property into the LLC in order to take advantage of this. Can someone who has done a transfer into an LLC for the purpose of accessing hard money verify if this is a good way to proceed?

Thank you!

[Matthew Crivelli]

If the property is in your personal name and you want to refinance into a rehab loan with a HML. You will not need to worry about transferring title to the LLC prior to contacting the prospective lender, as the lender and title company will facilitate the title transfer the day you close on your new loan. @Harold Rutila 

If you own the property free and clear + have comps to justify your ARV. You should be able to get the rehab money needed to fix the place up!