Investor / Sales Associate / Airline Pilot · Oviedo, FL · Member since 2016 · 105 posts · 31 votes
I'm doing the Brrrr strategy under an LLC and i'll be buying a house all cash. Can anyone recommend a bank, credit union, etc. that will do a cash-out refinance after the remodel under an LLC? I have a lender that will do a cash out refi with a seasoning period of 6 months but only if it's in my personal name.
It looks like you've been doing this for a little while now, so conventional commercial financing should be your first choice. It will cost less in rate and fees. Go to your local bank or the place where you do your banking and speak to their commercial loan officer. Ask them how long it's going to take to get done and if it's longer than 30 days, find a portfolio lender that can close faster if that's what you want.
There are many hang ups to going the regular commercial route; length of time self employed, full doc may not work because you write stuff off or the DCR may not work etc...
If you want a portfolio lender, there are several out there that offer no income verification, no seasoning, and no specific length of time self employed.
Investor / Sales Associate / Airline Pilot · Oviedo, FL · Member since 2016 · 105 posts · 31 votes
9y
@Upen Patel I actually just used that loan on my last property and it worked great. The down side was the time and paperwork it took to close. Orlando's getting so competitive that unless your a cash buyer it's hard to get deals accepted. I'm closing in cash, remodeling and then re-financing into a loan after the repairs. I just need a loan company that'll do a cash out refi with an LLC.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
9y
Well, the LLC eliminates All conventional financing....you have to get a commercial loan, most banks will do these, and the terms are nearly as good. I generally don't think the LLC is worth the restrictions, you need good insurance anyway.
It looks like you've been doing this for a little while now, so conventional commercial financing should be your first choice. It will cost less in rate and fees. Go to your local bank or the place where you do your banking and speak to their commercial loan officer. Ask them how long it's going to take to get done and if it's longer than 30 days, find a portfolio lender that can close faster if that's what you want.
There are many hang ups to going the regular commercial route; length of time self employed, full doc may not work because you write stuff off or the DCR may not work etc...
If you want a portfolio lender, there are several out there that offer no income verification, no seasoning, and no specific length of time self employed.
Investor / Sales Associate / Airline Pilot · Oviedo, FL · Member since 2016 · 105 posts · 31 votes
9y
Thanks for all the inputs! @Stephanie P. I'll try to find a portfolio lender. That's a good idea. Is it better to try for Credit Unions and Local Banks rather than bigger banks?
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
9y
@joshua lyon
I believe credit unions and local banks will be more flexible and try to help. If you go to a Wells Fargo or Bank of America, they will ship you to some centralized processing loan facility and the loan may or may not get done.
Investor / Sales Associate / Airline Pilot · Oviedo, FL · Member since 2016 · 105 posts · 31 votes
9y
Carrianne Mucho I've considered that but I'm running my LLC as a business not just as an entity to hold the property. Im keeping personal funds and business funds separated. I also have private investors with money in the LLC so I need to purchase under the business. I do have other rentals under my personal name I've considered moving under new LLC's though. Thank you for the thought.