Refinancing after the BRRRR

5 Replies

I now have an LLC to hold the properties.  How does that affect my financing.  I heard banks don't lend to LLCs so I'm a little confused on that.  If we buy under individuals name and then move the title, would I risk the bank calling my loan? What is typically done on BRRRR? Buy cash under which name? Refinance under which name?

Hello @Ayne C.  

Do some searching in the forums and you will find lots of the same discussions to your question.

The answer is you can do it both ways. This depends on what approach is right for you. If you buy with an LLC then you would get a commercial loan for your refi. If you buy in your personal name then you CAN refi into your name getting a conventional loan if the property is 1-4 units. You can look up the pluses and minus to both of these in the forums.

Personally I buy in my name then refi into my name utilizing conventional loans. You can have up to 10. If you are married your husband can have 10 as well. Just have them separate, as in only in one persons name for ea property. Keep in mind your primary residence counts as 1.

Yes, technically you can purchase in any name/company entity you want and then quit claim to your personal name BUT you will usually need 6mo of seasoning in your personal name before you cash out refi. So why do it?

My CPA that set up the LLC advises it doesnt matter where I hold the property, I can funnel the rents and pay expenses out of the LLC for tax purposes. Hmm...

Maybe the titles Ill just leave in my name.