Duplex held in LLC (Milwaukee)

[David Venancio]

My partner and I bought two duplex's with cash in Milwaukee and complete the transaction as an LLC. We would like to get out cash from the properties now but are having the following issue:

1.) Conventional loans not offered to LLC's

2.) If we "quick claim" out of LLC into our names we have to wait 6 months with Conventional Loans

3.) If we "quick claim" out/in of our names we are being told that the protections of the LLC is negated?

4.) Lenders willing to lend less than $75,000

With that said, questions  for the group:

1.) Has anyone been in the same position and willing to share there solution?

2.) Portfolio Lender in Milwaukee/willing to lend in WI on loan amount~$45,000

Thanks in advance!!!!

David

[Merrily Matthews]

I believe you could do something faster than the 6 month seasoning if you did Delayed Financing at 70% (for 2-4 unit) purchase price or 100% HUD whichever is lower. (this doesn't really help you get cash out, but frees up some of your money to use again) A Cash Out Refi requires the 6 month seasoning and is based on 70% (2-4 unit) of the appraisal price.

You are correct that conventional loans are not available to LLC's and your protection is lost. Highly recommend an umbrella policy for both you and your partner. Super cheap.

Quit Claim Deeds in MKE are taking about a month to get through the system. I just did this with my duplex.

I have a lender who will lend on $50k and above. PM me if that works for you.