LLC refinance attempting BRRR

[Martin Gaspar]

I am attempting to BRRR as my primary business model. I thought I had an exit strategy in place with a mortgage company including terms that were fixed and amortized for 30 years with the understanding they had to season for 6 months. Now, it is time to refinance the first property I purchased this year, and as I reinitiated the conversation with the cited mortgage company, I was informed there was a misunderstanding, and they couldn't lend to my LLC. This is entirely my fault, as it is explicitly and redundantly stated in these forums. I should have know. Nonetheless, I have purchased 3 properties running my numbers under these terms. As it stands, I have commercial lending in place that is quite favorable because it is loan to cost (allowing me to borrow for the rehab), but the numbers are very tight, as the mortgages are amortized over 15 years. They also have 3 year balloons, which make me a little scared. The first property is rented; the second property is very nearly complete with the remodel. I just purchased the third this week. Does anyone have a suggestion on what I should do to secure long-term financing? Going forward, should I simply purchase new properties in my name? I realize there are variables unknown and specifically unique to me, but I'm certainly hoping to solicit some wisdom.

[Jason D.]

Call around. I have a credit union that will lend to my LLC at 4.75% for 25 years. It's just a matter of finding the right lender for your situation.