Cash Out Refinance in Georgia

[Doris Logan]

Hello,

Does anyone know of a bank or credit union willing to do cash Out Refinances on a multi family property in an LLC? The property is located in Atlanta, Georgia.

Thank you in advance,

Doris 

[Nick Schoch]

It sounds like you are thinking the entity type (LLC) is a hurdle for getting a multifamily (i.e. 5+ unit) loan. All lenders I work with will provide cash out refinancing to LLCs for 5+ unit multifamily. In fact, some lenders require that you hold the collateral property in a bankruptcy-remote single-asset entity such as a Limited Liability Company.

For example, the Freddie Mac Small Balance Loans program requires a single asset entity for loans over $6 million. See page 2 of the Freddie SBL guide here:

Eligible Borrowers/Borrowing Entities:
Up to $6 million — Individuals who are U.S. citizens; limited partnerships; limited liability companies; Single Asset Entities; Special Purpose Entities; tenancy in common with up to five unrelated members; and Trusts (irrevocable trusts and revocable trusts with an individual guarantor)

Between $6 million and $7.5 million – Single Asset Entities

Tell us more about the loan request and we can provide more specific feedback.