We are 8 months into our BRRR strategy and on our 3 house. The first 2 homes we bought about a month apart. Rehab went great, renters are great all good.
Then came Refi. When we bought the first house, I titled it in my name. The second I titled in the LLC name. At closing, the first house went great. The second house failed to get approval because it was my LLC name. Now the lender has instructed me to do a quick claim deed on the last 2 homes and change to my name, but I have to wait another 6 months to Refi!!! Are there lenders that will lend to an LLC?
Are you opposed to getting a commercial loan on the properties? The underwriting is a lot less intense, they may have no seasoning requirements, and they lend to LLC's all day long. Any local bank will likely have a commercial lending VP you can talk to about it. The drawbacks vs. conventional mortgages are typically shorter amortization periods, balloons, and sometimes slightly higher rates. But it might be worth it, especially if you are looking to expand further.
I haven't thought about that. I'll run that past my CPA and see what he thinks.
@Wayne Holliman It sounds like your lender is not a fannie mae direct lender - if so there would not be a seasoning requirement for a title change so long as the continuity of obligation can be proven - you signed for entity, own entity and signed for debt - then it is not an issue. Your lender has an overlay that requires title seasoning.
cliff notes - You need a fannie mae direct lender with no overlays, shouldn't be difficult to find.
Commerical loans can be easier to get but the rates and terms are not nearly as friendly as conventional financing on 1-4 unit properties.
@Travis Sperr , I am having the same issue. I put the property in an LLC, of which my wife and I are the only members, and am running into seasoning issues. If you had a referral for a lender that could get this done, please let me know. I think the rules may have changed on this. I have used Guaranteed Rate in the past, and have had a positive experience, but they are unable to help on this current cash out refi.
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