Cash Out Refinance Investment Property Chicago

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Cash Out Refinance Investment Property Chicago

Nova Dear
Chicago, IL · Member since 2018 · 7 posts · 3 votes

My multi member LLC owns several rental units in Chicago. We do not currently owe any money on the units but were looking to get a cash out refinance loan on one of the properties. As of now I am the only member whom can qualify for a loan and wanted to know if it is possible that one member can be the sole applicant of this type of loan? Also any recommended lenders that offer non owner occupied cash out loans?

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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
8y
Originally posted by @Nova Dear:

My multi member LLC owns several rental units in Chicago. We do not currently owe any money on the units but were looking to get a cash out refinance loan on one of the properties. As of now I am the only member whom can qualify for a loan and wanted to know if it is possible that one member can be the sole applicant of this type of loan? Also any recommended lenders that offer non owner occupied cash out loans?

It sounds like you are talking about 30 year fixed residential loans. The property is held by a LLC. You cannot get residential loans with a LLC, You need to be talking with commercial lenders

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    8y
    Originally posted by @Nova Dear:

    My multi member LLC owns several rental units in Chicago. We do not currently owe any money on the units but were looking to get a cash out refinance loan on one of the properties. As of now I am the only member whom can qualify for a loan and wanted to know if it is possible that one member can be the sole applicant of this type of loan? Also any recommended lenders that offer non owner occupied cash out loans?

    It sounds like you are talking about 30 year fixed residential loans. The property is held by a LLC. You cannot get residential loans with a LLC, You need to be talking with commercial lenders

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    Second City Real Estate4.821 Reviews
    WebsiteView Page
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  • Michael Facchini
    Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
    8y

    Happy to help here. As Brie said though, if you are unwilling to take it out of the LLC, you're then looking at commercial loans...which come with notably different terms. Residential loans would require you to come out of the LLC. Any questions, happy to help!

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  • Ryan O'Mara
    Financial Advisor · Des Moines, IA · Member since 2017 · 173 posts · 58 votes
    8y

    @Nova Dear - Every lender has different criteria, but in general, any member who is 20% or more owner of the LLC will need to guarantee the loan. All FICO scores will be considered. Some lenders will take the lowest score and some will take the mid score (3+ members).

    Other issue you may run into is location.  Many perm lenders are currently shying away from Cook county.

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  • Lee Lockhart
    Chicago, IL · Member since 2017 · 79 posts · 39 votes
    8y
    Yes. I just messaged you a company.
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