Looking to find any commercial bank that will cash out refi to an llc after an all cash and rehab purchase. having trouble finding any that don't require a long seasoning period. I'm sure there has to be one in the dallas area!
@Benjamin Voorhis I don't do business in your state but I would search for a broker in your area that is approved with many different lenders that can shop this out for you
Thanks Melvin, appreciate it
Most will not refi to LLC. Typical "seasoning period" is 6-months. Then there is a limit of 10 SFH. These guidelines are regulated, so good luck finding someone that varies from them. I would be interested if you do.
@Benjamin Voorhis , many local chains of banks will do this. You're looking for a portfolio lender that holds their own loans, rather than selling them. @Duane Kidman , you're thinking about residential loans that will be resold on the secondary markets. Rules are different for commercial lending. So are rates, though. You'll typically be looking at 25% down on a 5/15 or a 5/20 ARM, rates around 6% to start, and you can negotiate the opening rate down as you do more business with them.
Benjamin, I work with Worthington Bank and will regularly buy properties at the trustee auction, then close on a refi within 30 days to get my cash out. But they really only want to do Tarrant County. I was recently talking to a LO from Prosperity Bank, which has branches all over DFW, and he said they'd do exactly the same thing, so they might be a good one to try.
Michael, do they use the new appraised amount? And if so what is the ltv ratio? Thanks for your time and help!
I have a few lending sources for LLC. email me
Local community bank is your best source, they can work around title and appraisal seasoning requirements/overlays that many Fannie/Freddie lenders have.
@Benjamin Voorhis I might know a lender. Reach out to me when you can please.