Options to Refi in a LLC

3 Replies

What do people usually do if they are BRRRRing a property and use a hard money loan which requires a LLC. Where do they get the financing when they are trying to do the cash-out Refi part to pay off the hard money. Will they have to go to a portfolio lender because it's in a LLC? Can you take the property out of a LLC and put it into your personal name to get conventional financing? Any insight would be great appreciated. This is the last step I need to figure out in my process.

@Allen McGlashing

Contrary to popular belief, you don't necessarily need a commercial loan to refi or purchase when in an LLC.

Most investors I work with, purchase with hard money or pay cash in full.  They either do some work to increase the value and rents or immediately refi it into a 30yr loan.  

Immediately refinancing uses deferred financing.  This allows an investor pull their cash right back out of the property.  Why?  The simple answer is speed.  You can buy a place a lot faster with cash than you can most any loan.  Once you have it purchased, you can pull your cash right back out to use for other investments.

Another option to refi is using a DSCR loan. These loans can be done with or without an LLC. No income, no employment history, and no DTI calcs. You qualify for these loans based on your credit worthiness and the cash flow of the property. Rates are a little higher than conventional but not crazy high.

Check these options out.  They are quick and relatively easy to do.  

Cheers!

Nick Belsky

Originally posted by @Allen McGlashing :

What do people usually do if they are BRRRRing a property and use a hard money loan which requires a LLC. Where do they get the financing when they are trying to do the cash-out Refi part to pay off the hard money. Will they have to go to a portfolio lender because it's in a LLC? Can you take the property out of a LLC and put it into your personal name to get conventional financing? Any insight would be great appreciated. This is the last step I need to figure out in my process.

Just use DSCR funding. Rates on 30 year fixed are in the 4's with a couple of points. That way, you leave it in the LLC.

Stephanie