Refinancing: Company Debt vs. Mortgage Debt

2 Replies

Essentially, I have about 20 units in one LLC. This LLC was given a loan from the guys that I work for an amount of capital to do my own deals. Essentially, these guys put pooled together personal money to create a fund, and I purchase and rent/sell houses for them, and I am paid in commish. The money is secured by future commish from our arrangement. None of the properties have a mortgage or any type of debt attached to them.

In this case, would I be able to refinance these properties? Or if the company debt:equity ratio is already at 75%, would they consider the company already too leveraged?

Yes you can but I think you must consult with a mortgage professional he can advice really well on this. 

@Steven Segal , if your guys have given you funds equivalent to 75% of the value of your 20 units, why would you currently need further refinance?

Just how many more properties do you intend adding to just one LLC? (Many if not most might advise that it's time to have more than one LLC)!

Surely you have enough "cash" now to just get normal mortgage finance (as opposed to re-finance) for any good deals that come up? Cheers...

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