Refinance under an LLC?

[Kevin Murray]

Hi everyone. I'm a new investor learning about the BRRRR process primarily as well as out of state investing in general, as I'm am in CA and prices are off the chart here. My challenge is all of the cash that I have to invest is in the name of my LLC. For various reasons I need to keep the cash and any investments I make under the umbrella of this LLC and cannot transfer into my personal name. For the time being I'd like to conduct all business under the LLC, but I'm questioning how easy it will be to refinance later on. I have heard mixed feedback on this topic, and am looking for a more definitive answer as to whether this is doable.

If anyone has experience with refinancing under an LLC or related financing strategies I would love to hear your input. Thanks so much.

[Jacob Sampson]

Originally posted by @Kevin Murray:

Originally posted by @Jacob Sampson:

There shouldn't be any issue refinancing with your properties held by an LLC. Happens all the time. The biggest reason it is no problem is that your bank is going to require you to personally sign for the debt. In fact you are probably personally liable for your current debt. The LLC does not protect you from the debt side, only the lawsuit side.

What I'm concerned about is not being approved. I have heard most banks shy away from LLCs and will not refi und 

I can't speak for all banks (or any for that matter), but I can say that it has never been an issue for me. Primarily, because it doesn't matter what entity holds title (the bank doesn't care). The bank cares about the people signing for the debt, which will be you. Now you may run into trouble if your debt to income ratio is unattractive, but that is a different issue from whether or not you have an LLC.