Rental Property Investor · Fort Mill, SC · Member since 2019 · 76 posts · 23 votes
I'll explain this as best I can. I have a property owned free and clear. Manufactured home deeded to the land it is an investment property in my LLC. I am trying to pull out some equity to reinvest in more property. I had one company ready to go, but they wanted to do an adjustable rate. At the current time that would be unwise in my opinion. Having trouble finding any other companies willing to loan on it.
A friend of mine suggested that I put it back in my personal name and try and get private money or a hard money lender to sell it to my LLC. Or vice versa keep it in my LLC and sell it to myself? Is this something possible? Gross annual rent 20-24k zillow property estimate is 167,500. Looking to pull out 75k credit is around 680
Lender · Peoria, AZ · Member since 2018 · 77 posts · 25 votes
4y
Biggest issue I see is the loan is just so small. Most lenders are going to have a 100k minimum loan size and sometimes more. Most mortgage brokers also want a bigger loan because compensation is based on a percentage of the loan. There are some lenders that will do smaller deals but your complicating factor is that it is a mobile home (the llc not so much of an issue especially with non-trid loans). Selling the property to yourself for from yourself to an LLC will not work because any title company worth 2 cents can figure it out most likely. Possibly look at a DSCR cash out loan and take more cash out to get the minimum loan size up. You may check with the lender/broker if you do a principal payment if they will allow you to re-cast the loan to a lower principal balance with the same term.