BRRR, Cash out refi for property in LLC
Looking for advice doing a cash out refi on a property owned free and clear, titled in an LLC. Banks I've talked to suggest that I re-title the property in my name, do the refi, then transfer back. I'd rather not do that due to the hassle factor.
Property purchased with cash, rehab with cash, rented out now. Looking to get 75-80% of ARV (~$110k ARV). I have good income, excellent credit (~800) and 25 free and clear properties (credit shouldn't be a problem). This LLC is new, only 2 months of revenue records.
Thanks for your advice,
Chris Sellers
Stanfield, NC
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Chris Sellers commercial/portfolio loans will be the loan type that will allow you to keep that property in your LLC. As a comparison, Fannie/Freddie types of loans will have a lower rate and would be a 30 year fixed rate.
Also, it's a pretty reasonable item to change from your LLC to your name. Usually, it is done the day you close on your loan. It's 1 piece of paper. Not sure how the other bank was describing it but it's not hard at all.
Investors are successful with either loan type so it's kind of up to you what you think is best for you. Feel free to ask any other questions if you need. Thanks!