Refinancing a property held in a LLC

10 Replies

Hey guys - I'm looking to refinance a property I have currently held in my LLC. Called a couple lenders and it sounds like I'm going to have to quit claim it back to myself to do the refi using a conventional loan. Then, quit claim it again back to the LLC after the loan is in place.

Are my only options to either quit claim it or go with a commercial loan if I want to keep it in the LLC long term?

Thanks.

@Brad E.

Don't do that:  https://www.biggerpockets.com/...

Sounds like you are talking with residential lenders.. well, when you decided to go with a LLC, sorry, but you should have anticipated this as part of the cost of doing business with a legal entity. Legal entities, such as a LLC, are not eligible for a conforming residential loan... Since LLC's provide no tax advantages (unless investing with a non-spousal partner), you need to operate it properly for the limited liablity that it can afford.

Good luck.

@Brad E.

Just use DSCR lending and leave it in your LLC. The rates and fees are slightly higher than conventional, but rates in the 4's on a 30 year fixed aren't all that bad compared to the hassle of doing a conventional loan.

Plenty of DSCR lenders/brokers here on BP that can help you.

Stephanie

thanks @Stephanie P.  I had a couple folks DM me about this.  

I'm at 4.875% now with conventional.  I dunno, maybe I should just leave it as is.  The main reason I was wanting to refi was to cash out some.

Originally posted by @Brad E. :

thanks @Stephanie P.  I had a couple folks DM me about this.  

I'm at 4.875% now with conventional.  I dunno, maybe I should just leave it as is.  The main reason I was wanting to refi was to cash out some.

It's all math.  With good credit, you may be able to buy the rate down into the 4.25% range.  Lower rate with cash in your pocket is a good thing for most.

See what it does to the cash flow and then you can say yes or no with numbers instead of emotion.

All the best

Stephanie