In 2015 I bought a rental property with my mother. We are both on the loan. Both of us have continued to grow our portfolios and in order to maximize our Fannie/Freddy loans, I want to buy her out. How do I do this? I hear people say it all the time, but what are the mechanics? Do we have to refinance or is there a way to do this like a normal sale? Any advice would be much appreciated.
If the property is owned in an LLC, you could buy her shares of the company effectively transferring 100% ownership to yourself. She would still be on the loan and the only way to change that would be to work with the lender.
Thanks for the reply Rob Beardsley. This property is held in our personal names. So does that mean we'll just have to refinance? I tried to do it with the current lender but they refused because I have 8 loans. Maybe I have to go with a different lender?
I would contact a mortgage broker who can shop your loan or your entire portfolio to multiple types of lenders to get all your options.
@Brandon Battle - thanks. That might help with my other problem, maxing out my loans. How do I do the research on this? Is there a list of these type of lenders here on BP?
I would recommend building a relationship with a local portfolio lender rather than one of the large national banks.
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