Refinancing hurdles on a recent cash purchase in an entity

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I closed on an Indianapolis SFR a month ago, did an extensive rehab and have a tenant moving in this week. So far, so good! I put $52k total into it and the ARV is around $80k so I figured it should be pretty simple to pull my money out and do it all over again. I thought that would be easier than it is turning out to be. Mortgage brokers don't want anything to do with a loan that small (which I understand...they need to make money like we all do). Most Indy credit unions will only deal with locals (I am an OOS investor) and most of the banks I talk to won't refi a property until the title has been "seasoned" for 6 months. I found a couple exceptions (Chase is one of them) but they are rather expensive and won't lend to an entity. One suggested I deed my property from my LLC to my private self an apply for a conventional loan which defeats the whole point of the entity. Anyone out there running similar deals structured in an entity doing something that I am missing?

@Ric Ernst

You need a commercial loan because it’s in an entity.  It is a small loan so try some local banks in the area where the property is located.  I have taken out a number of commercial loans.  Don’t bother with the big banks, that is not a product that will work for you.  If that doesn’t work you will need to try some lenders who work in the secondary market.

Good Luck.

Usually if you want to do a cash-out refi you need to own the property for 12 months otherwise most lenders will only do a rate and term loan for you if you owe money on it. If you own it free and clear usually you will need to wait 12 months to season the note. If you did find a lender to cash you out now the money will be expensive.

Hey @Ric Ernst - the biggest hurdle the property value and the loan amount. Most nationwide non-bank lenders will have a minimum loan amount of $75k - $100k. There may be some out there that can do as low as $50k but that's become a bit more rare. 

I understand you're out of state so credit unions may not be an option (especially if you're OOS + not a member), your next option is local community banks/portfolio lenders who would hold onto your loan after making it. If you found one that would do it but would require you to season title for 6 months then that's what I would do. Most lenders, if not all, have some sort of seasoning requirement and it's usually at least 3 months but many do it at 6 months, while others at 12. 

Another option (which from your posts, doesn't sound like one you would like to entertain) is speak to a lender that offers a portfolio product where you can pool properties valued at $72k - $99k together to achieve a total minimum loan amount of $300k ($50k per property). 

Appreciate the response @George Despotopoulos . I was thinking along the same lines. I'm actually in negotiations on another Indianapolis property now.