Cash Out Refi Options
Got a property in Michigan with no debt, has tenant - I normally use DSCR loans but loan costs and interest rates seem excessive right now.
Spoke with all the local credit unions and banks none of them are willing to do a cash out under an LLC
Questions are
1. What other options do I have?
2. Are most just taking personal loans then transferring over to LLC's?
All help and advice appreciated thanks
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Quote from @Philip L.:Hey Philip,
Got a property in Michigan with no debt, has tenant - I normally use DSCR loans but loan costs and interest rates seem excessive right now.
Spoke with all the local credit unions and banks none of them are willing to do a cash out under an LLC
Questions are
1. What other options do I have?
2. Are most just taking personal loans then transferring over to LLC's?
All help and advice appreciated thanks
I completely understand your frustration. Rates can seem excessive compared to 5 months ago. Have you considered doing an Interest-only loan or an ARM?
Quote from @Erik Estrada:
Quote from @Philip L.:Hey Philip,
Got a property in Michigan with no debt, has tenant - I normally use DSCR loans but loan costs and interest rates seem excessive right now.
Spoke with all the local credit unions and banks none of them are willing to do a cash out under an LLC
Questions are
1. What other options do I have?
2. Are most just taking personal loans then transferring over to LLC's?
All help and advice appreciated thanks
I completely understand your frustration. Rates can seem excessive compared to 5 months ago. Have you considered doing an Interest-only loan or an ARM?
It is frustrating thats for sure - I would defiantly be interested in a interest only loan probably not an ARM unless the rate was a no briner you got time to talk today I'm guessing you can give me a quote
- Lender
- Austin, TX
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Really hard for DSCR in Michigan right now because of the state restriction over what prepayment penalties we can offer. Gov't overreach IMO hurting borrowers and lenders
You could roll the dice and take a 12 month bridge; I have seen a lot of 5 year arms w/3 year prepays lately.
- Property Manager
- Royal Oak, MI
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@Philip L. just did 3 FNMA cashout refi's back in December!
Yes, then flipped deeds back to LLC's.
Hi Phillip, curious about what you ended up doing
Quote from @Nicolas Echegaray:
Hi Phillip, curious about what you ended up doing
Ended up doing a 10/1 ARM loan it's not perfect as it's interest only but it cashflows $500 a month after all expenses
got it! nice!
Do you mind sharing the lender?
@Philip L. thanks ..." regular " loans are already very high in rate and fee right now ..there are not many lenders willing to lend to LLCs and the ones that are will be even higher in rate and fees than the DSCR loan you reference