Refinance properties for mortgage

2 Replies

Hi all,

All of my properties hold by my LLC's .

I would like to start and refinance them and take mortgages from the bank in order to purchase more properties.

A friend told me that in order to refinance a property, the bank will ask me to change the ownership from the LLC to me.

Is that correct? What is the right proccess to do that?

Thank you

Hi Aviv,

We recently refinanced two properties which were held by our LLC. Our local bank had no problem with this and the new loans are also under our LLC (which owns the properties). We pulled out a fair amount of equity and did another deal with it. I think you should be fine.

AJ

Originally posted by @Aviv Berkovitch :

Hi all,

All of my properties hold by my LLC's .

I would like to start and refinance them and take mortgages from the bank in order to purchase more properties.

A friend told me that in order to refinance a property, the bank will ask me to change the ownership from the LLC to me.

Is that correct? What is the right proccess to do that?

Thank you

Your friend is correct assuming you want the Fannie Mae type loans characterized by 30 year fixed rate amortization terms and best interest rates.

If you're cool with portfolio and commercial financing where there is no "secondary market" and all profit must come from borrower directly in one way or another ("do you have $250k invested with our bank?" = "yes" is a nearly surefire way to get Fannie-like rates/terms, but not the only way), the LLC is a non issue.