Refinancing with a RE Trust

[Erik Pedersen]

Hey Everyone,

So we have a multi-family prop in Newark NJ that we are renting out. My partner used a home equity loan against her house and we paid for it in all cash. On the advice of a RE Atty that frequents our RE Investment Club we put the deed of our house in a Trust with our LLC as the beneficiary.

Now our problem arises every time we tell banks that we want to do a refinance because it seems that no one knows how to handle it through a trust.  Has anyone ever run into this problem?

Also, a lot of banks are saying we need 1 or 2 years 'seasoning' meaning showing positive rents before we can do anything.  On top of that, theyre saying we can only get 70% of the purchase price meanwhile we bought it at 95k and have put in 15k in repairs including a new roof.  Getting only ~70k is not what we are looking for.

Ive always thought that youre able to cash out refinance at least 70% of fmv / appraised value. Also the house is making $2200 a month in rent so thats about 3.5x what a 100k mortgage principle and interest would be.  This is a no brainer for lenders!  Also myself and my partner have great credit and plenty of income..

So my questions are - does anyone have experience refinancing with a house in a trust and do you have advice on where to go to get a 'real' cash out refinance.

Thanks all for any help!!