Convert to LLC during cash out refinance??

[Bob Mazza]

I want to do a cash out refinance and at the same time (if it makes sense) convert the property to an LLC. Would doing that at the same time be beneficial in any way?

[Andrew Postell]

@Bob Mazza I would say that this certainly depends on the loan type you are receiving for your cash out loan. If you are using "conforming, conventional" loans (Fannie/Freddie) then you cannot close in your LLC name. But you can switch title after closing. The loan would still be in your personal name. For a "portfolio" loan, you can close with an LLC...but your rate and terms would not be as good as a conventional. Both have their pros and cons so feel free to ask more questions if you need. Thanks!