BRRRR: Refinancing: Quitclaim Deeding

[Ashley Wynn]

Looking to start BRRRRing, but after speaking with several local lenders in Alabama about refinancing properties held in LLC, it appears that most only provide adjustable loans with 15-20 years terms. These terms in addition to a higher interest rate greatly reduces the potential cash flow compared to a 30 year loan. Does anyone have experience obtaining a loan through a hard money lender, quitclaim deeding to personal name for refinancing through a traditional bank then either quitclaim deeding back to LLC or land trust with LLC as beneficiary? If so, how did this affect the loan with the hard money lender considering you're transferring ownership prior to paying off the hard money loan? Did this extend your seasoning requirement for the refinance? When in the process did you quitclaim deed to personal? Looking forward to hearing responses. Thanks.

[Jamie O'Brien]

@Ashley Wynn - I've been having this conversation with my lenders up here in Birmingham as well. Small local banks are open to portfolio lending, but the property will remain in the LLC with a commercial loan with 20 year ARM's.... Not ideal.

In the past, certain traditional mortgage lenders would cash out refi with a single member LLC into your personal name, no problem. My broker told me they are now requiring 6 months seasoning on these types of cash-outs, if they will cash out an investment property at all. I posted a video on my YouTube page and Facebook page of our interview where we discussed this issue specifically a couple of weeks ago. Just search for O'Brien Homes