Refinance - Personal to LLC

[Ben Habig]

I currently own a rental property out right that I would like to refinance to get my cash back out of it for another purchase. I would like to put the property in an LLC when I do for liability reasons. However, my research thus far says I can not get a 30 year mortgage with an LLC. Without the 30 year term, this move becomes much less enticing. Is there something I am missing? I have looked into getting the mortgage in my name, and then transferring to LLC after mortgage is completed, but I get mixed reviews on this as being a bad idea. How do I accomplish both outcomes?

[Brandon Beardt]

Quote from @Ben Habig:

I currently own a rental property out right that I would like to refinance to get my cash back out of it for another purchase. I would like to put the property in an LLC when I do for liability reasons. However, my research thus far says I can not get a 30 year mortgage with an LLC. Without the 30 year term, this move becomes much less enticing. Is there something I am missing? I have looked into getting the mortgage in my name, and then transferring to LLC after mortgage is completed, but I get mixed reviews on this as being a bad idea. How do I accomplish both outcomes?

 Hi Ben

You can easily get a 30 year mortgage with an LLC through alternative financing options. Conventional lenders (which I believe is what you were looking into) won't allow you to close in an entity, which may be why you're not able to find what you're looking for. Alternative financing options (such as DSCR, Bank Statement, Commercial loans) give you that ability to close in an entity, but at higher costs (rates & fees) compared to conventional financing. There's also usually less documentation required with these programs when compared to full doc conventional loans. When looking to refinance, consider both options and weigh the pros and cons. Whatever route you choose, make sure they align with your long term goals. Best of luck!