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Updated about 6 years ago,
Trouble with cash out refi because property is under LLC?
Back in March, my wife and I purchased our first rental property (turnkey SFR 3 BR 1 Bath) using credit cards through SeedCapital. Looking back, I wish I had known about Fund and Grow (or others like it) who can allegedly get you the same type of funding without affecting your personal credit score, but that's for a different forum.
We've been working with a loan officer from Citizens bank for our cash out refi so we can start working on the next deal and everything appeared to be in order, but he called us today and said there would be a problem getting approved for the mortgage since our LLC is listed as the owner on the title and not one of our personal names. I was confused by this because ever since I started learning about RE investing through books and podcasts, the general consensus was to purchase your properties under a LLC for liability reasons.
We've never heard of anyone running into this issue on any podcast so we're not completely sure how to navigate it. Our first instinct is simply to talk to another lender, but in case we run into the same problem, has anyone ever been where we are or know someone who has? Any input is appreciated. Thanks.