Cash Out Refinance on LLC Property

Cash Out Refinance on LLC Property

Rental Property Investor · Tampa, FL · Member since 2020 · 15 posts · 5 votes

Hi everyone! I am looking to do a cash-out refinance on a Florida property we've had for over a year now. The property is titled under our LLC but I'm having a heck of a time finding a bank willing to do this directly under the LLC. All so far have told me I should transfer the title to my name, refinance, then transfer back, which is not something I'm particularly interested in doing. Has anyone had any luck with this in the area? Could I even do this with an out-of-state bank/credit union? I'm getting slightly defeated from my lack of success here. :-P

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Lender · CA · Member since 2019 · 82 posts · 46 votes
4y

@Karen 

@Karen C. I just did a Cash out DSCR loan in my LLC 30 yr fixed 4.25% rate for a duplex in Boise ID. It can be done. It's a hard money loan. It doesn't go on your credit report. It will use the income from your rental to qualify. 620+ fico is the minimum needed. Best rates of course is 720+ fico.

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  • Lender · CA · Member since 2019 · 82 posts · 46 votes
    4y

    @Karen 

    @Karen C. I just did a Cash out DSCR loan in my LLC 30 yr fixed 4.25% rate for a duplex in Boise ID. It can be done. It's a hard money loan. It doesn't go on your credit report. It will use the income from your rental to qualify. 620+ fico is the minimum needed. Best rates of course is 720+ fico.

  • Lender · FL · Member since 2020 · 68 posts · 38 votes
    4y

    @Karen C. Jessica is correct, a hard money/private lender can help you with a deal like this and keep the asset in your LLC (although the 4.25% rate she mentions would be extremely rare on such a deal). If she can connect you to that lender and you qualify, you should do it.

  • Rental Property Investor · Tampa, FL · Member since 2020 · 15 posts · 5 votes
    4y

    Wow, thank you both! I'm embarrassed to say I've never even heard of a DSCR loan. Does it essentially work the same as a conventional loan? Sounds like this could definitely be a great fit for us. @Jessica Tsao, does the company you used for your Boise duplex do loans in FL? I’d love to give them a call if you don’t mind. I’ll also start checking specifically for these loans down here too. 

  • Rental Property Investor · Tampa, FL · Member since 2020 · 15 posts · 5 votes
    4y

    Also, looks like our DSCR for the house is 1.76. Need to dig deeper for the FICO score

  • Lender · CA · Member since 2019 · 82 posts · 46 votes
    4y

    @Karen C.

    Check your inbox

  • Stephanie P.Pro Member
    Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
    4y
    Originally posted by @Karen C.:

    Also, looks like our DSCR for the house is 1.76. Need to dig deeper for the FICO score

    4.25% is very doable with a DSCR loan with that kind of DSCR. Of course it depends on the FICO.

  • Rental Property Investor · St Augustine, FL · Member since 2021 · 12 posts · 7 votes
    4y

    @Karen C. Did you reach a successful conclusion with the cash-out refi of your LLC-owned property? I am just getting started with my first property purchase (about to open an LLC), but I don't want to start down a path that will actually hold up my process! I'd love to connect with you and hear more about your experience, and any options that worked for you. I am located in northeast Florida.

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