When using the brrrr method

5 Replies

When using the brrrr Technique, dont you got to have the property in your name, not In a LLC, so if true my question is if i keep using this method and keep getting Mortgages then what's the LLC for when the Banks dont want you to put the property in an LLC

@Quinton Bogle , I know you can refi properties into LLC's, I personally have done both. I recommend you reach out to several banks and speak with both their commercial and residential lenders. Ask them about their parameters in regards to refinancing properties. Good luck!

@Quinton Bogle

If the property is in your personal name you will need a residential mortgage. In a LLC it's a commercial mortgage. Commercial mortgage has a higher interest rate, but the process is much easier since the approval is based on the cash flow of the property and its DSCR (debt service coverage ratio) usually 1.25 or better. Credit is not as critical, but they do run your credit because you still have to guarantee the loan. The only way not to guarantee the loan is a non-recourse loan, which unless your in multiple units (1M loan and up) and your using Fannie or Freddie. I have done both.

@Quinton Bogle , I don't know of many people that have commercial properties, 1M and up, in their personal name. I have a questionnaire sheet that I use when calling lending institutions that you're more than welcome to have. Send me a PM and I would be more than happy to send it to you. Again, Good Luck!

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