Cash Out Refinance for an LLC

[Joey Hamaoui]

Hey guys,

I am looking at doing my first BRRRR property and I called up one of my local mortgage lenders but he told me they can't do cash-out refinance for investment properties in the name of an LLC.

Is this accurate or unique to his institution? An advice how I can do a refinance on a property in the LLC name?

Thanks,

Joseph

[Michael Seeker]

@Joey Hamaoui - Any lender doing a Fannie/Freddie loan (i.e. 30 year fixed rate mortgage) will not be able to do any sort of financing with an LLC.

I've got most of my properties in LLC's and financing for them are all through local commercial lenders. The downside to this is that you'll typically only get around 20 year amortization and 5 year term loans. The upside is they have more flexibility and if you take time to build relationships you'll be able to get a lot more creative with deals than through a conventional lender. If you don't already have contacts or somebody who can point you to commercial lenders, you can start by calling local banks and asking to speak to somebody in the commercial mortgage department. Some banks don't do this type of lending, but if you get the right person on the phone, they will know exactly what you're looking for and what they can offer you.