Rental Property Investor · Delray Beach, FL · Member since 2014 · 224 posts · 169 votes
I am looking into refinancing one of my rental properties, which I own under an LLC. The lender requires that I move the deed into my personal name in order to get approved. Some questions I have as a result of this:
1. To anyone who has done this before, what kind of costs are associated with this?
2. Is there anyway to co-sign a loan in my own name with the LLC instead of a transfer? Any other potential workarounds?
3. I do not currently nor have I ever owned any property under my personal name, but I was planning to use some of the refi money as a down payment for a primary residence. I'd like to try to buy a primary under a first-time home-buyers program like FHA, but I'm afraid that transferring ownership of my rentals from my LLC might disqualify me from these first-time buyer programs. Would I be correct in that assumption?
Any information you may have would be appreciated. Thanks.
Rental Property Investor · Houston, TX · Member since 2014 · 91 posts · 76 votes
7y
@Jason L. No no no. Find a new lender that's a regional bank or credit union. They will lend directly to the LLC with a personal guarantee requiring 3 years of tax returns, a personal balance sheet and declaration you aren't involved in any lawsuits (or disclosure of details if you are.)
For reference these are non-conforming loans; also called “portfolio loans”. That’s all you want for investment properties. Then build the relationship and start pushing for non-recourse on future deals.
After you close the deal and all your accounts with current bank, go find a nice gift box, fill it with dog poop, write a nice note thanking the guy that gave you such poor advice. He sounds like the UBS guy who insisted I close my credit card accounts with zero balance when purchasing my first primary residence.
Rental Property Investor · Delray Beach, FL · Member since 2014 · 224 posts · 169 votes
7y
@Daniel Schiller I was talking to a credit union; not a bank. They said no to the LLC. Maybe I was just talking to someone who didn't know any better though.