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Private Lending & Conventional Mortgage Advice

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Philip L.
  • Wholesaler
  • Florida
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Cash Out Refi Options

Philip L.
  • Wholesaler
  • Florida
Posted Sep 23 2022, 12:17

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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Erik Estrada
Lender
#2 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
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Erik Estrada
Lender
#2 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
Replied Sep 23 2022, 12:25
Quote from @Philip L.:

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

Hey Philip, 

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? 
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Philip L.
  • Wholesaler
  • Florida
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Philip L.
  • Wholesaler
  • Florida
Replied Sep 23 2022, 12:29
Quote from @Erik Estrada:
Quote from @Philip L.:

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

Hey Philip, 

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

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Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
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Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
Replied Sep 23 2022, 12:34

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

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Issac San Miguel
  • Lender
  • Austin Texas
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Issac San Miguel
  • Lender
  • Austin Texas
Replied Sep 23 2022, 12:54

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.

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Drew Sygit#2 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
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Drew Sygit#2 Managing Your Property Contributor
  • Property Manager
  • Royal Oak, MI
Replied Sep 23 2022, 13:45

@Philip L. just did 3 FNMA cashout refi's back in December!

Yes, then flipped deeds back to LLC's.

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Replied Oct 25 2022, 13:07

Hi Phillip, curious about what you ended up doing

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Philip L.
  • Wholesaler
  • Florida
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Philip L.
  • Wholesaler
  • Florida
Replied Oct 25 2022, 14:08
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

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Replied Oct 25 2022, 14:18

got it! nice!

Do you mind sharing the lender?

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Dave Skow
  • Lender
  • Seattle, WA
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Dave Skow
  • Lender
  • Seattle, WA
Replied Oct 25 2022, 15:59

@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