Refinancing investment properties under llc

[Alex Cabej]

Hi all-

I have a 800+ credit score, which I am very proud of. I own properties with a higher rate than I like.  They are in high-end areas and generate juicy income! So the trade-off is worthwhile.  

I am on the lookout for new properties to add to my portfolio. I am always considering refinancing to more reasonable rates, such as 4.3-4.5 (my rate is quite a few basis points more). Would refinancing really hurt my chances to add to my portfolio? My credit score would take a hit, presumably, unless I refinance under my LLC correct?

I would like to move the titles over into my corporate name, but haven't figured out how to achieve this. I notice whenever I look at buildings (mixed or residential) to buy, they all have titles under corporate entities, usually just llcs.  

Most of the tax, insurance, and bank "experts" I have interacted with are not very advanced and get confused easily, unfortunately.  Can anyone please point me in the right direction?

Thank in advance,

AC

[Chris Mason]

Lowering the interest rate would lower the payment, improving cashflow, and improving DTI. It would help, not hurt, with future financed acquisitions.

No reason to worry about a credit inquiry temporarily lowering your score by a point or two for a few months, every score over 740 is treated the same. Having 4 or 5 mortgages, assuming payments are always made on time, pretty much guarantees a 775 FICO from what I typically see.

If title is held in an LLC when you refinance, it'll have to be a commercial loan, not a residential 30YF type fannie loan. Here in California, transfer taxes are often assessed when moving things into and out of an LLC, so we don't see a lot of LLC action.