Confused Investor Here

[Nick Dunbar]

I started investing 1.5 years ago.  I found a local bank that put in writing that I could buy in my personal name (to avoid closing at a higher interest rate) and transfer it to a partnership without them calling the loan due. My attorney reviewed it and agreed it was fine.  We are very happy with our process and are repeating it with the same bank on another property.  

Now to my confusion, with lower interest rates my lender said I could cash out refi to BRRRR out all my initial investment. After running the numbers we decided to leave in 5k of the initial investment (68% LTV) and the payment would drop by 35 bucks a month. So essentially very little increase to cash flow numbers while drastically increasing the overall rate of return. We are all set. The lender even set the closing date with the attorney. Well, now they called and said, "hey no problem. We will still write the loan but you can't cash out Refinance because it was previously held in a partnership." The logic makes sense. Sure I could clean out all the equity in a place by transferring it to my personal name and pulling out the equity, BUT my partners has to sign off on the transfer. So, in my mind this was all done above board.

Okay, not the end of the world, but how are other people investing with partners.  Should i just start buying properties with the partnership and take the hit on the interest rate?  How are people doing this without a bunch of snags?  I still want to get this to a much lower rate, but is there a better way to be handling the financing for a "newer" partnership. I'm clearly missing something.