Hard Money Loan as a company or individual

[David L.]

I have never used a hard money lender and researching I see they ask if you are holding the property as individual or company. Because my income level is not at the lowest tax rate, it makes more sense to hold property under business entity. Will this make a difference to the hard money lender? The property I am considering is in San Jose and the purchase price is about 70% of ARV. Repairs will put the deal at 84% of ARV.

[Ben Wendt]

The lender that I've found absolutely requires that you have an entity. In talking with others in my search to find one, it has definitely been a common requirement. And, it makes sense to have the loan and do business in the name of an entity so that your liability is limited and your personal assets are protected.