Refinancing Multi-Member LLC

[Travis Bagley]

Alright I never thought this would be the hard part of real estate investing.

I have 2 properties that are owned outright by my LLC. Properties are in the 165K and 170K area so not looking for a micro-loan or anything strange.

What does the refinance process look like inside of an LLC? Every time I call a bank or credit union things are great until I mention LLC. The second I say that I can hear an audible sense of confusion on the other side of the phone. I am finding that most 1st or even 2nd tier folks in the mortgage department are not experienced with this and have no idea what to do. I'm frustrated because I feel like they should be able to tell me what my options are and fully explain the process.

1) If refinancing a property owned by an LLC is it a commercial loan? Even if I am being asked to guarantee it personally?

2) Will anyone loan against the LLC and the property without a personal guarantee? I don't really want to be personally liable. It defeats the purpose of the LLC.

3) Am I going to get bad rates because my properties are in the LLC? So far I have only been offered 5/1 ARMS at over 4%.

Thanks and as always appreciate the advice.