Cash out on my LLC owned duplex.

13 Replies

I would like to cash out on my LLC owned duplex. I bought this duplex cash about 5 years ago, and its value has increased since. I want to cash out to buy other properties. We bought it for $100k, similar duplexes are selling for $200k

From my research so far, I have concluded the best option is to get a portfolio loan (70% LTV). I don't really want to put the property under my name.

Any other advice? How do i find portfolio loans?

@Anette Lyons-evans - Properties owned by a LLC should have commercial financing. Residential 30 year fixed loans can only be made to a person

Yeah, this instance would call for a commerical loan since it's owned by an LLC. You may be able to get up to 80% LTV, so definitely shop around.

@Frankie Woods -  No, commerical loans don't count against the Fannie/Freddie 10 loan rule

@Frankie Woods - no they do not.  But commercial is 5 year balloon loans around 5.5%

@Anette Lyons-evans - There are many options for cash out refi on a 2 unit titled in an LLC. Every lender will have different requirements such as: dscr, seasoning, location, FICO, etc...

Loans are unusually 30 year am with fixed rates for 5, 7, or even 30 years.  Yes you can get a 30 year fixed rate.  I work with several lenders who offer this.  It's more expensive, but you can do it.

We are able to get commercial portfolio loans for our LLC owned properties at about a 5.125%, 25 year amortization and 10 year lock right now. After the 10 years, it is a max of 1% rise per year with a maximum increase of 6% over the life of the loan.

A lot of people on here say they have not seen better terms, but at least it will give you something to shoot for.

Dan Dietz

@Daniel Dietz Thanks for the detail info, that gives me hope to find a good term loan for my LLC. What type of lender was it?

Thank you all for your responses. 

It was a 'regional small bank', meaning about a dozen or so branches. They are actually about an hour and a half from me, but actively reach out to investors to recruit them and keep the loans in house. 

Dan Dietz

@Anette Lyons-evans Try calling some small banks in your area, and you may be pleasantly surprised to find out that some of them can offer you some really interesting products that would help you solve the problem of not putting it under your name. 

Hope this helps. Goodluck. Thanks! - Ola 

There are programs out there that will let you cash out and should be able to close you in an LLC.

@Brie Schmidt , This isn't meant to be argumentative, but informative for the crew here. A commercial loan is not limited to a 5 year balloon product. This is VERY short sided. For a duplex in an LLC, we have multiple lenders on our platform that are offering 30 year fixed rate mortgages. For commercial properties that are non residential, balloon payments are very typical, but are not only limited to 5 year options. I hope this is helpful.

I was just talking to a lender today about this very thing. I have a LLC owned property. This particular lender said to pull it out of the LLC, get a 30-year fixed, slide it back into the LLC.

I've currently got a 5/1 15-year arm at 5.5% at the moment.

Call all the small local and regional banks where the property is located.

Ask if they do portfolio lending and allow you to keep the property in a LLC.

There are a couple local banks here that allow it.

As a FYI you can also do a delayed finance on a cash purchase in a LLC but can only get back what you put in not more

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