Cash purchase through LLC and then how to pull my cash out?

[Alejandro Lisson Ramirez]

Hi everyone,

I am foreign investor not based in USA that would like to start investing in rental real estate in USA.

I am planning on opening an LLC for my investments and looking forward to acquire my first property in cash.

I would like to know: if after acquiring the property in cash (through my new LLC), is it possible to do cash-out refinance, delayed-financing, or HELOC for investment property? I would like to take the cash out to invest it in other properties.

Thanks,

[Kevin Sobilo]

@Alejandro Lisson Ramirez, I am not certain but I suspect you may need to look for a non-recourse loan. Since you are not based in the United States, a lender may only want to consider the asset in their decision making not you or your LLC's finances.

A non-recourse loan would allow you to refi out a smaller portion of your equity. Perhaps something like 50-60%.

If you talk to lenders and find this is true, you could consider finding a partner in the United States, that might open up more financing options.