Looking for a knowledgeable lender
I own a four family in St. Louis that I bought cash, rehabbed it and put renters in it and now that I added that value to it I want to pull my cash out. The problem is I also purchased a four plex in San Diego before I was able to finance the St. Louis property. That's not necessarily a problem actually, the problem I am seeing when I run the numbers is that my debt. to income now won't let me finance the St. louis property. The St. Louis property has a DSCR well above 1.35 and it is the subject property so I would think I wouldn't have an issue. The San Diego property because I got an owner financed loan only has three out of four units rented so it appears like it doesn't cash flow that great and of course its california so the numbers are different. Here is where it gets a little more interesting. I tried to finance the property with one bank, a big one many of you know of them they are advertised on Bigger Pockets constantly. They said I needed an entity to finance the property, I have been avoiding the LLC, LLP or Corp. because I am trying to avoid the 800 dollar fee annually. They said one of the entity options was an Illinois land trust. We looked into the Illinois land trust and that seemed to be a good option for us, so we had our lawyer set it up. 1000 dollars later when we are about to get the appraisal ordered the bank says they want to see the entity paper work. I send them the paper work and they say they can't do the loan if the entity is a land trust. They apologized to our Lawyer for telling us that was an option but this is where we are now. What should we do? I need to pull that money out of course to move forward. Thank you for any advise.