All Forum Posts by: Derek Walvoord

Hi @Nghi Le. Thanks for your thoughts. I think we have found a way to do it. A local bank will do a HELOC, but only if they are in first position. So, we may pay off the LendingHome loan with the HELOC, or simply do a rate and term loan and do a cash out later. I guess this is totally normal, but this is the first time I have gotten hung up on the LLC to personal names issue. Thanks!

@Joe Villeneuve - I may have a local bank that will do a HELOC. They just need to have me transfer the property into my own name - basically be personally on title. They claim there is no six-month seasoning for this product. We will see. Thanks!

Thank you all. Yes, my Hard Money Lender wanted me to close in an LLC, which was fine, but then the seasoning issue is there. In the past, since I am the only member of my LLC, I have been able to close these loans with a Letter of Explanation.

I will have to see if my HML will let me close in my name. I kind of think not.

Thanks all!

@Steve L.. Not necessarily a problem, and tenants are already signed up. I want to be able to do a solid cash out so I can move on to the next thing. I wonder if there has been a rule change or something. I was able to do this in the past.

As we know, every refi is a little different!

@Chris Mason, I am running into the issue of rehabbing in an LLC, and not being able to cash out refi because of seasoning - the lender wants 6 months in my personal name. I wonder if some rules just changed. This didn't seem to be a problem before.

@Travis Sperr, I am having the same issue. I put the property in an LLC, of which my wife and I are the only members, and am running into seasoning issues. If you had a referral for a lender that could get this done, please let me know. I think the rules may have changed on this. I have used Guaranteed Rate in the past, and have had a positive experience, but they are unable to help on this current cash out refi.

Hi All,

I am trying to BRRRR and I am getting stuck on the refi part. I used LendingHome, a hard money lender, to do the rehab. They make you initial close in an LLC. For the post rehab/rented out/taking cash out part, lenders want to close in my personal name. Not really a problem, but I am running into seasoning issues. Wells Fargo will apparently do HELOC's for investors, but will only use the post-rehab/new value after 12 months. TD Bank will perhaps do it, but I don't think they service Chicago. Huntington Bank is having a hard time going from LLC to personal (which they require) for less than 6 months seasoning.

Anybody have an out here? What am I missing?

I would be happy with either a cash-out refi or a HELOC.

Hi All,

I am trying to BRRRR and I am getting stuck on the refi part. I used LendingHome, a hard money lender, to do the rehab. They make you initial close in an LLC. For the post rehab/rented out/taking cash out part, lenders want to close in my personal name. Not really a problem, but I am running into seasoning issues. Wells Fargo will apparently do HELOC's for investors, but will only use the post-rehab/new value after 12 months. TD Bank will perhaps do it, but I don't think they service Chicago. Huntington Bank is having a hard time going from LLC to personal (which they require) for less than 6 months seasoning.

Anybody have an out here? What am I missing?

I would be happy with either a cash-out refi or a HELOC.

Hi All, 

I am trying to BRRRR and I am getting stuck on the refi part. I used LendingHome, a hard money lender, to do the rehab. They make you initial close in an LLC. For the post rehab/rented out/taking cash out part, lenders want to close in my personal name. Not really a problem, but I am running into seasoning issues. Wells Fargo will apparently do HELOC's for investors, but will only use the post-rehab/new value after 12 months. TD Bank will perhaps do it, but I don't think they service Chicago. Huntington Bank is having a hard time going from LLC to personal (which they require) for less than 6 months seasoning.

Anybody have an out here? What am I missing?

I would be happy with either a cash-out refi or a HELOC.

I have a friend that wants to start in Real Estate, and she and her husband are trying to figure out what to do.  This is the email I sent to her after we had breakfast last Saturday and she tried to sum up some takeaways. Maybe it might be interesting to some other new people.  For context, I have been around Real Estate for over a decade and have done a few deals.  So, I am not really new, but by no means a pro.

Cool. Good luck!

Those seem like reasonable takeaways. The real takeaway might be that Real Estate is a scary business that is waaaaaaay outside most of our comfort zones. Even after a few of these, I still don't really know or feel like I know what I am doing.

That doesn't mean not to do it, but it is a risk. Calculated, but a risk. I often have to ask myself, what is real real potential downside here, not my crazy overreaction (the current project is really worth about the same, so we could sell it and take a minor loss. I often blow it up in my mind into us being put out on the street, losing our home, being mortified etc)

Maybe the other thing to remember is that it is the business of handling the weird unexpected things as they come to you. It really is real-time problem solving. Today, some guy showed up at our job site claiming that the workers were not allowed to be there and that he was calling the police. Really, the previous owner hadn't told his crew that they didn't need to winterize the unit again. Fun. But, we got through it with a minimum of excitement.

I think pulling the trigger on the first deal/project is the main thing. Just try and make it a small bet, and not a bet-the-farm one.

I can't wait to hear what happens!

Derek