Loan Options...

[Matthew Gealta]

Being that I am new to the game and still learning.... I have a few questions

So hypothetically lets say that my LLC bought a home outright in cash and did a complete renovation, and it did it all with investors money. So now that the home is finished, I would have to sell it in order to pay back the investors. My question is, Is there a way to take a loan out against the property in order to pay the investors their portions, but keep the property in the goal of renting it out? what loan options do I have? I have thought about a home equity loan, but the issue is that the home is titled to y company and I have only owned it for 2 months, no the needed 6 months. So what other options do I have to both pay the investors back and keep the property in the name of the business?

[Jeff Pollack]

Hey @matthew Gealta,

You can pull that off.........if you start with the property owned in your own name. As it is you'd need to quit claim the property from your LLC to your own name and get the existing Note assigned to you (or have a new Note made in your name). Then you can rate-term refi out of the Note and into a conventional loan. I am assuming here that your "cash" purchase was via a Note with Security Deed, etc.

There are brokers/lenders who service the new Note in house and sell directly to Fannie, so there won't be any overlays that require seasoning. You can just rate-term refi at 75% LTV of the appraised value. If your existing Note with you private lender covered purchase + rehab and you have added sufficient equity via your rehab you can pay off your investor with the bank's money...........then move the property back into your LLC.