cash bought,LLC owned rental property-How can I cash out/borrow?

[Joe R.]

I have cash bought, LLC owned property.

I wish to keep the property & borrow against it to get a line of credit or a cash out refi.

-Does anyone know of lenders who who will assist me?

The 5 local banks I contacted so far have told me they cant help because the LLC owns the property and they would not allow me to add my personal name to it to guarantee a loan.

[Scott Smith]

Hey Joe,

Some banks will work with the LLC with higher rates, it just takes some shopping around. Another strategy I have seen many investors use is implementing a Land Trust as the "middle-man" between the property and the LLC. In this case you would refinance the property in your personal name, then transfer the property into the Land Trust, assigning yourself as the trustee and the LLC as the beneficiary. This type of transfer is protected by the St. Germain Act from the Due on Sale Clause, as the Land Trust is considered an estate planning tool. This article covers the strategy in a bit more detail.

The Land Trust is also useful for any future estate planning and can also provide more privacy through removing your name from public record if created correctly. 

Let me know if you have more questions, I've seen it done in every state and can provide more info if you would like.