How to cash out refi a house new single family home purchase

[Eugene G.]

Buying a single family home with a private interest only loan (no lien recordings).  No prepay penalties.

The goal is to quickly purchase the home that I believe is greatly undervalued with cash from the loan, then in 6-12 months get a mortgage to convert the expensive private loan into a lower interest, longer term, amortizing loan.

Question is who should take title of the home right now in order to be able to apply for the mortgage later? Me, my business partner, our LLC, a newly created trust, something else, does it matter?

My concern is that if our LLC takes title to the home now, then in 6 months if I were apply for a mortgage to purchase the house from the LLC, the bank would consider it a non arm lengths transaction and not offer the mortgage. The LLC has also claimed a loss for 7 consecutive years. Are there any lenders that would cash out refi the single family home for the LLC? I remember reading about Blackstone B2R years ago for leveraging a portfolio of homes, and would like to ask if anyone has experience with them?

If the LLC would not qualify for a cash out refi loan under any program, then should I take title to the house now and apply for a cash out refi as soon as the minimum ownership period is satisfied? The private loan used to purchase the house is not recorded as a lien and there are no records of it. Anyone have any experience or advise on how best to proceed?