Refinance from personal TO DSCR or portfolio loan into LLC

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Refinance from personal TO DSCR or portfolio loan into LLC

John Mason
Member since 2024 · 1k+ posts · 351 votes

Good Morning

So let us say I bought a SFH under my name. After 6 months if I want to move it to a LLC what do i do?

I need to do Quit Claim Deed and also refinance into a DSCR or portfolio loan?

Thanks

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AJ ExnerPro Member
Lender · Springfield, MO · Member since 2023 · 663 posts · 320 votes
2y

Hey John,

Some DSCR lenders would only require 90 days of seasoning and you could refinance it at that point, which would do the same as a Quit Claim in getting it under your LLC.

You would essentially shift the ownership on title from your individual name into your LLC via the refinance and save some additional closing costs, though minimal they may be, by not closing a QC and a Refi back to back.

Good luck! Happy to help where I can

[email protected]417-427-2612
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  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 663 posts · 320 votes
    2y

    Hey John,

    Some DSCR lenders would only require 90 days of seasoning and you could refinance it at that point, which would do the same as a Quit Claim in getting it under your LLC.

    You would essentially shift the ownership on title from your individual name into your LLC via the refinance and save some additional closing costs, though minimal they may be, by not closing a QC and a Refi back to back.

    Good luck! Happy to help where I can

    [email protected]417-427-2612
    1Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 695 votes
    2y
    Quote from @John Mason:

    Good Morning

    So let us say I bought a SFH under my name. After 6 months if I want to move it to a LLC what do i do?

    I need to do Quit Claim Deed and also refinance into a DSCR or portfolio loan?

    Thanks


    It really depends what your ultimate goal is if you're trying to eliminate the debt from your personal credit report, you'd have to refinance with the business purpose only DSCR lender. But if you're simply just trying to quit claim into your business name, you can do that. They really are not any extra benefits to quit claiming into your business name as far as layers of protection are concerned so what are your real goals here?

    [email protected]860-538-3672
    ProAlpha Capital55 Reviews
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    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Devin Peterson I want to establish Business credit to do flips afterwards using Business Line Of Credit

    1Reply
  • Hannah Meyer
    Member since 2024 · 5 posts · 2 votes
    2y
    Quote from @Devin Peterson:
    Quote from @John Mason:

    Good Morning

    So let us say I bought a SFH under my name. After 6 months if I want to move it to a LLC what do i do?

    I need to do Quit Claim Deed and also refinance into a DSCR or portfolio loan?

    Thanks


    It really depends what your ultimate goal is if you're trying to eliminate the debt from your personal credit report, you'd have to refinance with the business purpose only DSCR lender. But if you're simply just trying to quit claim into your business name, you can do that. They really are not any extra benefits to quit claiming into your business name as far as layers of protection are concerned so what are your real goals here?


     What do you recommend for more layers of protection then?

    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    Okay the main goal of this is to show AMEX  3000 USD per month revenue to get their Business Line of Credit  (upto 250k)

    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Hannah Meyer

    https://www.biggerpockets.com/forums/48/topics/1170797-how-do-you-protect-your-properties

    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 695 votes
    2y
    Quote from @John Mason:

    @Devin Peterson I want to establish Business credit to do flips afterwards using Business Line Of Credit


    Suppose you want to do more flips and open up creditworthiness for yourself. Refinancing into the LLC business name will separate the mortgage from personal credit. That should also help build business credit.

    [email protected]860-538-3672
    ProAlpha Capital55 Reviews
    WebsiteView Page
    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Devin Peterson AMEX  offers BLOC if you have revenue of over 3000  per month. That would help flip a lot ..That is why I posted

    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 695 votes
    2y

    Wait thats really interesting! Do they require a min personal credit score too to obtain the business LOC - CAn you share a link with some info?

    [email protected]860-538-3672
    ProAlpha Capital55 Reviews
    WebsiteView Page
    1Reply
  • Hannah Meyer
    Member since 2024 · 5 posts · 2 votes
    2y

    @John Mason Thank you!

    1Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 695 votes
    2y
    Quote from @John Mason:

    @Devin Peterson AMEX  offers BLOC if you have revenue of over 3000  per month. That would help flip a lot ..That is why I posted


     Do you have to show stabilized asset generating $3k more every month, or one flip per month that nets a $3k profit - maybe either?

    [email protected]860-538-3672
    ProAlpha Capital55 Reviews
    WebsiteView Page
    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    Need to show 3k  per month for about 4 months

    1Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y
    Quote from @Devin Peterson:

    Wait thats really interesting! Do they require a min personal credit score too to obtain the business LOC - CAn you share a link with some info?

    https://www.americanexpress.com/en-us/business/blueprint/terms-and-conditions/business-line-of-credit/

    American Express® Business Line of Credit offers access to a commercial line of credit ranging from $2,000 to $250,000 however, you may be eligible for a larger line of credit based on our evaluation of your business. Each draw on the line of credit will result in a separate installment loan. All loans are subject to credit approval and are secured by business assets. Every loan requires a personal guarantee. Total monthly fees incurred over the loan term range from 3-9% for 6-month loans, 6-18% for 12-month loans, 9-27% for 18-month loans, 12-18% for 24-month loans, and are subject to change for future loans drawn under the available line of credit. Loans incur a loan fee for each month you have an outstanding balance. Not all customers will be eligible for the lowest fee. Not all loan term lengths are available to all customers. Eligibility is based on creditworthiness and other factors. Not all industries are eligible for American Express® Business Line of Credit. Pricing and line of credit decisions are based on the overall financial profile of you and your business, including history with American Express and other financial institutions, credit history, and other factors. Lines of credit are subject to periodic review and may change or be suspended, accompanied with or without an account closure. Late fees may be assessed. Loans are issued by American Express National Bank.

    1Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 695 votes
    2y
    Quote from @John Mason:
    Quote from @Devin Peterson:

    Wait thats really interesting! Do they require a min personal credit score too to obtain the business LOC - CAn you share a link with some info?

    https://www.americanexpress.com/en-us/business/blueprint/terms-and-conditions/business-line-of-credit/


     Amazing info!!!

    [email protected]860-538-3672
    ProAlpha Capital55 Reviews
    WebsiteView Page
    1Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y
    Quote from @Devin Peterson:

    Wait thats really interesting! Do they require a min personal credit score too to obtain the business LOC - CAn you share a link with some info?


     Min Credit would be 700 I think

    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Devin Peterson you can also use Fund and  Grow

    https://www.biggerpockets.com/forums/50/topics/439644-fund-and-grow-financing?page=26#simplified-forums__discussion__replies-container

    https://mbcapitalsolutions.com/what-we-do/

    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Devin Petersonand MB  Capital Solutions

    https://www.biggerpockets.com/forums/50/topics/670669-busine...

    0Reply
  • John Mason
    OP
    Member since 2024 · 1k+ posts · 351 votes
    2y

    @Devin Peterson 

    https://www.biggerpockets.com/forums/22/topics/1085932-buy-a-flip-home-with-business-line-of-credit

    0Reply
  • Drago Stanimirovic
    Real Estate Coach · Miami, FL · Member since 2024 · 1k+ posts · 485 votes
    2y

    Hi John,

    Yes, you can transfer a single-family home from your personal name to an LLC after 6 months, and here's what you'll need to do:

    1. 1. Quit Claim Deed: You'll need to file a Quit Claim Deed to transfer ownership of the property from yourself to your LLC. Keep in mind that some lenders might trigger the due-on-sale clause, so it's important to check with them before doing this.
    2. 2. Refinancing: If you want to refinance, you can consider a DSCR (Debt Service Coverage Ratio) loan or a portfolio loan. These types of loans are ideal for LLCs and investment properties since they focus more on the property's cash flow than your personal income.

    Let me know if you need help with this process or finding the right loan options!

    Best,
    Drago

    1Reply
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