Refinancing to conentional loan with BRRRR

[Han Oo]

Hi BP members,

I have this refinancing part question.

I buy the house with hard money loan with cash then rehab, rent and refinance with conventional to pay back my hard money lender. So, currently, hard money lenders only lend to LLC as far as I know. So, when I refinance with conventional loan, that property is still under LLC and I wont be able to get residential mortgage, right? So, is there any way that I can transfer that property to my personal name and refinance as residential loan? Or is there any other way? So, currently, it seems like selling is the only way to cash out and pay back to hard money lender. Please kindly advise.

[Brandon Sturgill]

@Han Oo I don't see an issues with holding a property in your personal name as long as you are protected with insurance/riders...but those certainly are not bullet proof...I have SFR property in my personal name that I bought a long time ago and never transferred it over...honestly not too worried about, but its on the list of things to do. At the end of the day, holding in some type of entity is the way to go...it just makes more sense.

If you create an LLC, you should be able to specify how long it will last...I put something like 2000 years...just in case :) But the LLC can be useful for lots of things, and your holdings can ebb and flow through them...a good strategy is to buy through a holding company and then hold each property in an LLC...

LLC's are great...I use a main one to do things like register trade marks. Your state is not as friendly for filing as mine, but you can do this stuff yourself without a lawyer or crap-*** site like LegalZoom. Follow this link: Virginia LLC