Refinance - but from who?

[Neddie Smith]

I currently would like to place two investment SFR that are owned free and clear within an LLC. After the transaction, I would like to do a cash-out refinance for the property.

So my question is this: Do I have to get a commercial loan or a normal residential loan? What are the differences? If a commerical loan is necessary, what "words" do I need to use to reach the right person(s) at a bank or lending institution?

Thanks in advance!

[Brian Garrett]

If they're going to be in an LLC then you'll need to get a commercial/portfolio loan.

Typical conventional Fannie/Freddie loans won't allow the properties to be held under LLC's.

The main difference is that commercial loans have less favorable rates/terms than conventional loans.