BRRRR Deal - Conventional vs. Commercial Loan Refi
I’m a few days away from sending out my first direct mail campaign. I’m focusing on one specific town and I’m targeting duplexes with out of state owners. I’m hoping to purchase a BRRRR deal out of the mailing.
I have a few hard money lenders lined up for the initial purchase, but they only lend to business entities and not individuals. That’s not a problem since my plan was to form an LLC anyway to stay protected.
Here’s my question on the refinance. Once I purchase the property and get it rehabbed and rented, when I refi do I now need to get a commercial loan since it’s in an LLC or should I look to transfer title back to my personal name and get a conventional loan and then move it back to the LLC? Is this even possible? What are the advantages/disadvantages of residential vs. commercial loans?
I do want to note that I’m looking to work with a local portfolio lender and I do plan to scale my business to acquire 10+ properties in the next few years.
Thanks in advance.