BRRRR out of state and refinancing in an LLC

[Angus Yang]

Hey BPers!

I'm thinking of investing out of state, specifically in value add/fixer uppers. I'm planning on using a HML and from the ones I've talked to so far, they require that I borrow within an LLC.

I've got two questions:

1. When setting up the LLC does it matter what state I set it up in? Do I need one for every state that I'm going to invest in? Or even so far as an LLC for every property I acquire?

2. How would I go about refinancing a property I have under my LLC? Would love to connect with any investor friendly lenders on here.

Thanks!

[Basit Siddiqi]

@Angus Yang

If investing without an LLC is something you want to you - I am sure some hard money lenders will do so. You likely have to call up some more people.

You normally want to create the LLC in the state that the property is located in. 

1. When setting up the LLC does it matter what state I set it up in? Do I need one for every state that I'm going to invest in? Or even so far as an LLC for every property I acquire?

You do not need to create a new LLC for every state that you plan to invest in. You have the option of registering the LLC as a "foreign LLC" in the states that you plan to invest in the future.
However, you should reach out to an attorney to see what is the best way to do this. You may want to create one or multiple LLC's based on risk factors and risk tolerance.

2. How would I go about refinancing a property I have under my LLC? Would love to connect with any investor friendly lenders on here.

Banks under Fannie Mae/Freddie Mac guidelines do not issue loans to LLC's.
Therefore - you may need to reach out to a portfolio lender for the refinance.