Looking for a way to REFI early??

Question

I have owned a 3 unit In Apple Valley for about 3 month under my LLC. Property is worth around 150k i have a hard money loan on the property for 70k at 12%. I am holding this property and am looking for a way to refi this deal with out waiting the 6 months seasoning.

Any one know of a way to do it? Called a few lenders and some credit unions. No way to do it so far.

Any one know of a hard money lender for buy and hold deals with a good rate?

If i do have to wait the 6 months, should i transfer the property back to my personal name because my LLC has no credit? Or does the 3 months that i have owned the property under my LLC count towards a 6 month seasoning.

Ann Bellamy · Answer

When I talk to other hard money people around the country, I'm told that the California hard money market is so competitive, that some markets have rates as low as 9%.  Don't know if that's possible in your area.

If you keep the property in your LLC, you'll need a commercial loan, as Jon said.  You are more likely to find what you need from a small portfolio lender.  Think "Yucaipa Savings Bank" if there is such a thing.  Also, sometimes small banks even a couple of hours away are expanding and will look at deals outside their immediate area.  Conmercial rates are higher than residential rates, and are typically for 5-10 year terms.

If you want the lowest possible rate, you'll need to move it into your own name, get your 6 mo seasoning and then apply with a conventional residential lender.  Which your hard money lender may not allow, given the SAFE act.  Be sure to check with him so you don't start a foreclosure situation without realizing it.

Jon Holdman · Answer

Are you wanting to use a new appraisal or just the price you paid?  Do you want cash?

No hard money lender is going to give you the rate and term length you need for a long term hold.

Keep calling. You're lookIng for a bank or credit union that will do a commercial real estate loan.  If you're looking for conventional then it will need to be in your name. Some lenders will require six months after you move it to your name.