Great questions, Vasudev these come up a lot with investors scaling into more doors.
Mortgages to LLCs: Traditional lenders usually require the loan in your personal name, but many private and DSCR lenders will lend directly to LLCs, which helps keep liability and accounting cleaner.
Cash-out / HELOCs in LLCs: HELOCs are tougher under an LLC most banks prefer residential HELOCs in personal name. That said, cash-out refinance through a DSCR or investor-focused product is usually much more straightforward and commonly used by LLCs.
Complications: An LLC doesn't complicate things too much if you're working with lenders used to investment properties. In fact, it often helps you protect your portfolio long term.
@Vasudev Kirs Many lenders will provide financing to an LLC but its important to clarify the lender will be looking closest as you as the guarantor. There are some loan products that are only offered to borrowers who take title in their name but many loan products are available for properties titled to an LLC.
An LLC doesn't complicate financing, it's often the expectations of the borrower believing it's the LLC that's being approved for the loan and unwillingness to turn over necessary information for underwriting or seeking out a loan product not intended for LLC's. Alternatively, its poorly drafted operating agreements or over complexed entity structures that may be more commonplace in complexed transactions but not for simpler loan requests like single family homes or smaller multi-family properties. Unfortunately, the underwriters are not accustomed to reviewing complexed entity structures which complicates the underwriting process and adds confusion and delays.
For you, it's important to turn over a well-organized loan application, completed PFS and have your entity documents properly drafted and easy to follow. Assuming the collateral is solid and you are solid in terms of creditworthiness, your objective is to make it as easy as possible for lenders underwriting department to recognize you are a low risk application. Lastly understand the lenders lending parameters (LTV, debt coverage ratio and other covenants that may apply and be realistic with your loan request ask ensuring it matches up with their lending parameters).