Updated over 5 years ago on . Most recent reply
Partnership BRRR problem
How do you BRRR refinance a property bought in your name and transferred to a 50/50 equity partnership (no due on sale clause. Transfer was approved in writing)?
We didn’t do this the ideal way. Purchased conventional about 2 years ago. It was our test run into investing in real estate. Bad news, it went really well. Now we want to really ramp it up.
Townhome Property details:
Bought for 90k
Rehab 11,960
~70K left on loan.
Appraised this month for 135k.
Max loan ~102.
Cash flow after refi 187 a month after all accruals
So, the problem. Fannie Mae said you cannot take cash our due to the chain of title previously being held with an LLP. I asked if it was an LLC would it work. The Answer was only if it was a single member LLC. How can I every take equity out if this is the scenario? Are their other options I'm missing because (you know) you don't know what you don't know?