BRRRR Refinance Question

[Angie Taggart]

I've watched the BP webinar on the BRRRR method but I'm wondering how this works if you buy the property in your name with the goal of moving it into a holding LLC after the rehab. Will banks allow you to refinance out of your personal name and into a new LLC?

[Joseph Gozlan]

@Angie Taggart commercial banks will allow you to put it in the name of the LLC but the loan terms are not favorable compared to conventional financing.

Conventional lenders will not allow financing in the name of an LLC but once you are done with the transaction you might be able to transfer it to your LLC if you are OK with the (relatively low) risk of the bank calling the "due on sale" clause in the note.