Hello BP,

I am currently purchasing my first single family residential property next week. I would like to reach out to the community for some help/advice on which lenders that will offer a cash out refi for my property. The property is going to be currently owned by my LLC. Most lenders that I have spoke to will only do a cash out refi unless it's owner occupied.

The advice I got from most lenders is to purchase the property under my own name and then quick claim the deed over to the LLC. This is one option; however, I'm trying to find a lender that can do a refi under the LLC.

The property is currently located in Indianapolis. Any help or advice is greatly appreciated. 

Best Regards,

Khanh

Are you based in Indy? Changes who you can work with. Feel free to reach out - I just did a cash out in LLC on 7 of my units yesterday.

Originally posted by @Nick Giulioni :

Are you based in Indy? Changes who you can work with. Feel free to reach out - I just did a cash out in LLC on 7 of my units yesterday.

Yes, My LLC is based in Indianapolis. I will send you a DM. Thank you Nick.

You will be able to find lenders who can offer a cash out refi for a property held in an LLC, but It also sounds like you might be trying to refi fairly quickly. Most lenders will have a seasoning period of 6-12 months, you might want to take that into consideration as well

Originally posted by @Tarik Turner :

You will be able to find lenders who can offer a cash out refi for a property held in an LLC, but It also sounds like you might be trying to refi fairly quickly. Most lenders will have a seasoning period of 6-12 months, you might want to take that into consideration as well

Absolutely, most lenders I've talked to require 6-12 months of seasoning period. LTV for LLC is generally 75% and for owner occupied it goes up to 80% LTV. Some lenders typically will have a minimum cash out amount (e.g., loan has to be a minimum of $50,000). Appreciate the response.

Khanh Le

I wanted to share some info that I received from other BP members. 

Either you can go conventional or commercial for your refinance. 

Conventional loan would require to be under your personal name. The interest rates and term loans are better. Most banks and local credit union requires 6 months seasoning period for 70-75% of LTC (loan to cost) or 12 months seasoning for appraisal value. 

Commercial loan would be able to do cash out refinance for LLC but the interest rates are higher and the loan terms are shorter. Some of the banks I've talked to have terms length of 15-20 yrs for a 5/1 or 5/5 ARM.

Depending on the banks that you choose, ask if they are willing to work with out-of-state investors. Some credit unions require you to live in the city in order to qualify for membership (credit unions). 

I hope this information helps. Feel free to reach out if you have anymore questions. 

Khanh Le