How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

Rental / DSCR · 5 min read

How to Finance a Rental Property in an LLC

The short answer

Most conventional lenders won't lend to an LLC. How DSCR and portfolio loans let you hold rentals in an LLC, why investors do it, and how qualifying works.

You finance a rental held in an LLC with a business-purpose loan, most often a DSCR loan, because those lenders are built to close in the name of an entity. Most conventional mortgages, by contrast, must close in your personal name.

Why hold a rental in an LLC?

Potential liability separation between your rentals and your personal assets (protection varies by state and depends on maintaining the entity properly).
Cleaner books for each property or each partnership.
Scalability without your personal debt-to-income ratio capping you.

How does qualifying work?

A DSCR loan qualifies on the property's rent versus its payment, not your tax returns, so closing in an LLC is standard rather than an exception. You typically sign a personal guarantee, but the loan and title sit with the entity.

What about a whole portfolio?

Once you hold several rentals in LLCs, a portfolio (blanket) loan can roll them into one loan with a single payment, simplifying your financing and freeing capital to keep buying.

Setting up the entity

A single-purpose LLC per property (or per group) is common, quick, and inexpensive to form. Talk to your attorney or CPA about the right structure for you, and if you do not have an entity yet, set it up before closing.

Frequently asked

Can you get a mortgage in an LLC name?

Yes, with business-purpose loans like DSCR or portfolio loans, which are designed to close in an entity's name. Most conventional consumer mortgages cannot.

Do you need a personal guarantee on an LLC loan?

Usually yes. The loan and title sit with the LLC, but the lender typically asks the principal to personally guarantee it.

Should each rental be in its own LLC?

Many investors use a single-purpose LLC per property for liability separation and clean books, though some group properties. Confirm structure with your attorney and CPA.

Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.

Related programs

Rental / DSCR Portfolio Loans Conventional Investment Bank Statement / No-Doc

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DSCR Loan vs Hard Money Loan DSCR Loan vs Conventional Loan

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