The Quick Read: A hard money file for an LLC-owned flip has two halves: the company’s papers and the deal’s papers. The lender reads the property, the rehab plan, and the exit first, then checks that the LLC is real and that the people behind it can stand behind the loan. Get both halves clean and consistent before you submit.
- The LLC is the borrower, but you will usually sign a personal guaranty.
- Entity papers (formation filing, operating agreement, EIN letter, good standing) must match every other document by name.
- The deal half needs an executed contract, a line-item budget, sold comps, insurance, and a written exit.
- Proof of funds should trace cleanly into the LLC’s account.
- Fix-and-flip leverage is tied to project cost and experience, and it varies by lender, property, and experience.
Most files that stall are not bad deals. They are good deals with a mismatched name, an unsigned agreement, or a lump-sum budget. This article walks through what to gather, in what order, and where the usual rules break.
What this loan actually costs to carry.
Hard money is sized against the project and priced by time. Enter the deal and see how much the program will lend, the cash required at closing, the carry while you hold it, and what is left at the exit.
Leverage tiers on the current program: 85% with fewer than 2, 90% with 2 or more, 93% with 5 or more completed projects — every tier capped at 75% of after-repair value. Loan amounts up to $5,000,000, larger by exception; terms of 6 to 18 months, interest-only, no prepayment penalty. The rehab portion funds in draws against completed work, not at closing.
Program parameters shown update from Lendmire’s centralized guideline source. Rate, points, and months are editable assumptions, not quoted terms.
Cost cap sets the loan · positive spread
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. Rate, points, and months are editable assumptions. Hard money is business-purpose financing for real estate investors, not a consumer mortgage. Leverage on the current program tops out at 93% of project cost for investors with a documented track record, capped at 75% of after-repair value, with rehab funding up to 100% of the documented budget released in draws; actual terms vary by lender, borrower experience, property, and exit. Lendmire is a mortgage broker, not a lender.
What the File Is Built Around (and What the LLC Changes)
A hard money file is built around the collateral and the plan, not your paycheck. The lender wants to know what the property is worth after repairs, what the work will cost, who will do it, and how the loan gets repaid. Personal income documentation matters far less than it does on a standard mortgage.
Hard money loans are business-purpose investor loans on non-owner-occupied property. Because they are business-purpose, they are reviewed differently from a standard owner-occupied mortgage. Across the wholesale network Lendmire works with, the typical collateral is a 1-4 unit residential property, with ground-up construction going to 10 units.
An LLC adds a layer. The lender now has to confirm that the company exists, who owns it, and who has authority to sign. So the file splits into what the LLC supplies and what you supply personally as guarantor. A guarantor is a person who promises to repay the loan if the borrower does not.
Who Is the Borrower, and Who Is on the Hook?
The LLC is the borrower, but the individuals behind it are usually still on the hook. A personal guaranty is a separate signed promise, and it is standard on investor loans made to entities. Forming an LLC does not remove that obligation.
Nolo explains that an LLC’s liability shield does not cover debts the owner personally guarantees. Creditors routinely ask for guarantees on business loans for exactly that reason. So plan your risk as if you are personally responsible for the loan, because on most files you will be.
Many lenders also expect the flip to be titled in an entity. If you are still deciding whether the LLC can take title in the first place, Lendmire’s piece Can an LLC Take Title on a Hard Money Fix-and-Flip Loan? covers that question directly.
The Master Checklist: What the LLC Gives, What You Give
Split the file into two piles before you collect anything. This keeps entity papers from getting buried under personal ones, and it makes it obvious what is missing.
| Group | LLC supplies | You supply as guarantor |
|---|---|---|
| Identity | Formation filing, EIN letter | Government ID, credit authorization |
| Authority | Operating agreement, signing resolution | Signature on guaranty |
| Money | Business account statements | Personal financial statement, proof of funds |
| Experience | Entity project history, if any | Track-record sheet |
| Deal | Contract, budget, scope, insurance | Support for ARV and exit plan |
ARV means after-repair value, the estimated worth of the property once the work is done. The deal documents are signed by the LLC, but the guarantor usually stands behind the budget and the exit story.
Entity Documents, One by One
Four documents prove the LLC is real and show who controls it. Each has a way to go wrong.
Formation filing. This is the Articles of Organization or equivalent filed with the state. It proves the company exists and fixes its exact legal name. If you lost your copy, the state office that holds business filings can issue another.
Operating agreement. This shows each member’s ownership percentage and who can sign for the company. Lenders ask for it whether or not your state requires one. An unsigned agreement is a common problem here, so sign it before you submit. If the signer’s authority is not obvious from the agreement, add a short written resolution approving the project and naming who may sign.
EIN letter. Provide the letter itself, not just the number.
Certificate of good standing. This shows the company is current with the state. A brand-new entity may not have one yet, and lenders often ask for it only if available. An older one should be recent, because an expired certificate invites a follow-up request.
One document you no longer need to chase is a beneficial ownership report. FinCEN states that entities created in the United States, and their beneficial owners, are exempt from that federal reporting. A filing receipt is not a standard file item for a U.S. LLC. State filings such as annual reports still matter, because they feed good standing.
Name Consistency: The Quiet File-Killer
The exact legal name of the LLC must appear the same way everywhere. A lender or title company will compare the name across documents, and a mismatch triggers a request that stops everything else.
Trace one name through these places:
- The purchase contract and every addendum.
- The loan application and the guaranty.
- The EIN letter and the formation filing.
- The business bank account and its statements.
- The insurance policy and the title commitment.
Watch the small differences. A missing “LLC,” a comma, an abbreviation, or an old name after an amendment can all count as mismatches. If the contract was signed in your personal name, ask the seller’s side about an assignment to the LLC before the file goes in.
Funds and the LLC
Proof of funds should show the money to close plus a reserve, and it should trace to the right owner. The cleanest path is to move your cash into the LLC’s business account and then pay from that account. Contributing personal funds to the company leaves a paper trail the lender can follow.
Submit complete statements, not screenshots. Every page, the account holder’s name, and the balances. If the funds sit in a personal account, expect the lender to ask how they will reach the LLC. Large recent deposits usually need a short explanation and a source document.
Each guarantor also provides a personal financial statement. It lists assets and debts in one place, and it lets the lender see liquidity beyond the bank statements.
Deal Documents: Tie Each One Back to the Entity
The deal half of the file is where the lender spends most of its time. Each item should name the LLC and support the same story.
Contract. Provide the fully executed purchase contract with all addenda and the earnest money receipt. The buyer’s name should be the LLC or a clear assignment to it.
Scope and budget. Build a line-item budget with a contingency, and write a scope of work that matches it line for line. Lenders react poorly to a lump sum. An itemized breakdown prepared with a licensed contractor, plus bids and proof of the contractor’s license and insurance, shows you have thought through the costs.
Value support. Include sold comparable sales that support your ARV. Choose comps that a reasonable underwriter would accept, and be ready to explain the differences.
Insurance. Builder’s risk, sometimes called course-of-construction coverage, protects the property during the work. The lender is typically named as mortgagee or loss payee, and the named insured should be the LLC.
Exit plan. Write a sale target and a fallback, such as renting the property and refinancing. A fallback shows the lender how it gets repaid if the sale takes longer.
Track record. List each completed project with the address, dates, purchase, and sale. Experience drives leverage on this product. Fix-and-flip programs commonly fund up to 93% of project cost at five or more completed projects, up to 90% of project cost at two or more, and about 85% with fewer than two. Every tier is capped at 75% of after-repair value. Rehab money is typically released in draws against completed work, up to 100% of the rehab budget. Those are rehab-budget figures, not a purchase loan-to-value. All of this varies by lender, property, and experience. This is not a commitment to lend.
On the personal side, a 620 credit score is the typical minimum, with additional conditions below 660. First-time investors qualify at the lower leverage tiers. Loan sizes commonly run up to $5,000,000, with larger loans by exception. Terms are generally 6 to 18 months, interest-only, with no prepayment penalty.
The Order to Assemble a Hard Money File for an LLC
Build the file in four stages. Doing the early work before you have a contract saves you from scrambling later.
1. Before you go under contract. Form the LLC, sign the operating agreement, get the EIN, and open the business account. Prepare the track-record sheet, the personal financial statement, and recent bank statements.
2. At contract. Collect the executed contract, earnest money receipt, and any addenda. Order contractor bids and start the line-item budget.
3. At submission. Add the scope of work, sold comps, insurance quote, and exit plan. Give every file a plain name that includes its content, such as the LLC name and “operating agreement.” Run the pre-submission audit below before sending.
4. After submission. Answer follow-up requests with a complete response in one message, and send the same document name the lender asked for. During the rehab, request draws as work finishes, and expect an inspection before funds are released.
A Worked Example (Percentages and Ratios Only)
Consider an investor with two completed flips who forms a two-member LLC. She plans to buy and renovate a three-unit property, so it falls inside the 1-4 unit collateral range.
With two completed projects, her program tier points to roughly 90% of project cost, still capped at 75% of ARV. That cap is the one that usually binds, so her ARV comps need to be strong. Her contingency is built into the budget, and the draws cover the rehab as work is verified.
Her first submission has a problem. The contract names “Maple Row Holdings LLC,” the operating agreement names “Maple Row Holdings, LLC,” and the insurance quote names her personally. The lender asks for corrections, and the file pauses.
The fix takes three steps. She confirms the exact name on the state filing. She asks the insurer to reissue the quote in that name with the lender as mortgagee. She then submits a corrected contract addendum if needed. Nothing about the deal changed, but the file now reads as one story.
Where the General Rule Breaks
A brand-new LLC. A company with no history has nothing for the lender to evaluate, so the guarantors’ credit, assets, and experience carry the file. A good standing certificate may not exist yet, and lenders generally understand that.
Multiple members. Lenders usually ask owners with meaningful ownership to sign the guaranty. The cutoff varies by lender. If a partner does not want to guarantee, raise it before you apply, not after.
A holding company as a member. When an LLC owns part of your LLC, the lender will want the upstream entity’s papers too, and it will trace down to the individuals. Bring the whole ownership chain in one organized folder.
Personal-name closings. Some lenders allow closing in your own name, and others require an entity. Confirm which one applies before you sign a contract.
Personal use. A business-purpose label has to match the facts. Under Regulation Z’s business-purpose exemption, the creditor decides in each case whether credit is extended primarily for business purposes. If you plan to live in the property, a signed statement of business purpose will not change that. Use hard money only for non-owner-occupied investment properties.
Licensing. There is no single national license for lenders. Rules vary by state, and the product is not available in every state or city. Lendmire arranges hard money through its wholesale network in 41 markets, including Washington, D.C.
After the Flip: Where DSCR Fits
Many investors treat hard money as the first stage of two. The loan covers the purchase and rehab. Then the investor sells, or refinances into long-term rental financing once the property is stabilized. Lendmire brokers that path.
A DSCR loan is the usual long-term option for a rental. DSCR stands for debt service coverage ratio. It compares the property’s monthly rent to its PITIA, which means principal, interest, taxes, insurance, and association dues. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Clearing that ratio is not the same as positive cash flow, since repairs, vacancy, and management sit outside the calculation.
Keep the LLC’s name and documents consistent across both loans, and you reuse most of the file. Lendmire’s complete DSCR loans guide explains how the second stage works.
Key Terms Defined
After-repair value (ARV): The estimated market value of the property after the planned renovation is finished.
Operating agreement: The document that shows who owns the LLC, in what percentages, and who may sign for it.
Personal guaranty: A signed promise by an individual to repay the loan if the LLC does not.
Draw: A release of rehab funds after the work is done and an inspection confirms it.
Loss payee: The party, usually the lender, named on an insurance policy to receive claim proceeds for the property.
EIN:
Pre-Submission Self-Audit
Before you send anything, check each line.
- The LLC’s legal name is identical on the contract, application, EIN letter, insurance, and bank account.
- The operating agreement is signed and shows ownership percentages and signing authority.
- Every guarantor has ID, a credit authorization, and a personal financial statement.
- Bank statements are complete PDFs, with the account holder’s name visible.
- The budget is line by line, with a contingency, and it matches the scope of work.
- Comps support the ARV, and the exit plan names a fallback.
- Insurance names the LLC and lists the lender.
Next Step
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals.
This article is general education, not legal or tax advice. Entity, guaranty, and title questions depend on your state and your documents, so consult a qualified attorney or CPA about your own situation. Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
Frequently Asked Questions
Do I need an LLC to get a hard money loan?
Not always. Some lenders allow closing in your personal name, and others require an entity. The rule varies by lender and program, so confirm it before you sign a purchase contract.
Can a brand-new LLC qualify?
Often yes, because the guarantors’ credit, liquidity, and experience carry the file. A new company has no history, so expect lower leverage tiers if you are a first-time investor. Eligibility varies by lender, property, and experience.
Do all members have to provide ID?
Lenders typically ask for ID from every signer and every owner with meaningful ownership. The exact cutoff varies. If a member will not sign a guaranty, discuss it up front.
Does the operating agreement need to be signed?
Yes, send a signed copy. Lenders use it to confirm ownership percentages and who has authority to sign. An unsigned agreement usually triggers a request that interrupts the file.
Whose account should the funds come from?
Ideally the LLC’s business account, funded by your documented contribution. That keeps the paper trail simple and matches the name on the contract. If funds start in a personal account, be ready to show how they reach the company.
About Lendmire
Lendmire, NMLS# 2371349, is a non-QM mortgage broker serving real estate investors in 41 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
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References
1. Nolo: Limited Liability Protection and LLCs, A 50-State Guide
2. FinCEN: Beneficial Ownership Information
3. CFPB: Regulation Z, Section 1026.3 Exemptions
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Hard Money Loan Requirements for an LLC Borrower · Does a Hard Money Lender Cap Loan to Cost on a Flip? · Hard Money vs Bank Financing Requirements for a Fix and Flip
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.