Best way to get cash out of investment property.

[William Daley]

Hi BP,

I have a single family home in Albany County, NY. I purchase it in December. The renovation should be complete this month. 

I paid cash for the property and renovation. 

I would like to keep it as a rental and pull cash out.

The home is owned by my corporation and I would like to keep the loan in the business name, without any personal guarantee if possible.

Anyone that can guide me in the best direction I would appreciate it.

If your able to help fund me in NY even better!

Thank you.

[Sasha Mohammed]

Commercial loans will let you close in the name of an LLC. There are lenders out there that will let you do a DSCR cash-out loan with 3 months seasoning and use appraised value for your transaction. Many of these loans won't report to your personal credit anyway, BUT...

You, or another partner, would be a guarantor. This means if you default, they can come after you personally IF and only IF the collateralized property is not enough to satisfy the obligation. 

You can ask about non-recourse options, but to be frank, those are few and far between right now. Non recourse means they are limited to the collateral itself and that's all they can come after in the event of default.