LLC cash out refinance

[Rebecca Williams]

My friend/business partner and I purchased a two family investment property using seller financing about a year ago. It's a 50/50 split partnership. I recently inquired about doing a cash out refinance and was told it can't be done because we are in an LLC and it's a 50/50 split. It can only be done if someone is majority owner (51% or more) or we change the way title is held. We can refinance the house but cannot take cash out. We need the cash in order to purchase our next property. Does anyone know if this is accurate information and if so, any insight on how to handle this situation. Are there other options or alternatives? Two factors to consider, We are not apposed to refinancing out of the LLC and a HELOC is not an option because there is a time limitation on the refinance, which is fast approaching. Thanks in advance for any help!

[Brian Kantor]

Hey, @Jordan Perryman. Not ready to pull the trigger on anything yet, and still doing research, but I did find a couple options. 

Quorum Federal Credit Union would do a HELOC on a property owned in an LLC and let you borrow up to 80% of your equity. First 5 years are interest-only payments. Also, if you have two or more properties in an LLC (not sure if needs to be in same LLC), they will do a cash-out refi on one of them using the other as additional collateral. 75% LTV. I spoke with Tiffany Mazzoccoli over there.

I also spoke with @Alex Bekeza at BRRRR Strategy Funding, who will do a cash-out refi in an LLC for a loan value of $100k+ at 70% LTV (aka, an ARV of ~$145k+ minimum).

Keep me in the loop with what you decide as the more info I can get, the better.