BRRRR Cash-Out Refinancing for a new LLC (with 3 partners)

[Mark Cermak]

Hi there! I'm currently looking to form an LLC / Partnership Agreement to get started on doing BRRRR's and funding them with cash up-front. Looking to fully vet this out before getting started and want this to be set up correctly from the start. I've spoken to a CPA/JD and understand how to best set things up from a tax/liability standpoint, but the last piece that's missing is this: HOW DOES A BRAND NEW LLC (with no tax returns/credit history) GET FINANCING FOR A RE-FI ON A BRRRR? The whole point of this is to be able to replicate it, and if you can't get a cash-out refi, it doesn't work. Who can provide this financing over and over again at 75-80% LTV for a new LLC to leverage funds?

[Alex Bekeza]

@Mark Cermak Most of the big nationwide commercial options will not require that the LLC have any history or seasoning. The loan is based entirely on guarantor FICO and subject property cash flow (DSCR based on proposed rates/LTV).

As far as 80% LTV for Cash Out, it doesn't exist right now in this commercial space. However, 70-75% is doable.

@Kris Wong You're correct that rates are higher than Fannie/Freddie but 30 year fixed options are still available.