Cash Out Refi, HELOC, or Home Equity Loan ?

[John Caleb Pavlus]

BP,

Scenario - Properties are cash owned. Properties cash flow nicely. All Non-owner occupied multi-families, 2 - 4 units. All properties are part of an LLC. My business partner and I are 50/50 partners of the LLC.

How would you get the cash out of the property?  Where are you finding the best fixed terms - Local or Institution?  

Will it being part of an LLC change the financing products available?

Appreciate your thoughts BP team. 

Caleb  

[Seth M. Jones]

When you own properties in the name of an LLC, it limits the mortgage options to business financing only... This essentially means that you're doing commercial financing, versus the traditional mortgage financing which is so attractive. All of the options you are looking for are going to be possible through niche business lenders, but not at nearly as attractive of terms as if you owned them in your name.

Might be worth investigating switching to your personal name, getting an umbrella policy, then financing through a traditional mortgage. In this case, a HELOC offers the most flexibility (for continual investing), while with current rates the cash-out offers the most stability and long term lowest interest. Hope this helps