Updated over 4 years ago on . Most recent reply
Refinance BRRR in Georgia
Hello, I am at the refinance step in the BRRR method now. I'm wondering what the best way is to cash-out refinance. The property is held in an LLC, I am reading that this will restrict refinancing options only to commercial loans. Thanks for any pointers.
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Did you quit-claim your property into an LLC or did you buy it directly under an LLC? Is there an existing loan on the property or you put all cash to bring it up to this point? And is it a Jumbo Cash Out ?
Generally, yes if its under an LLC you can still refinance the property but your options are limited and the interest rates are going to be higher by 1-1.5% or more depending on cash out amount. There are banks in Atlanta that do cash out and I can send a name of few if you want. However, due to current situation (pandemic) the banks are more stringent on cash out refinance especially on investment properties. Lot of banks are not willing to take the risk but some banks are doing but the cost of finance is higher.
Alternate option you could refinance in your personal name (again lot of unknowns with the specific type of entity setup you have an partners etc.) I am just assuming for sake of discussion its just you on the LLC. Some banks require you move the deed from LLC to your name for a period of 6 months before they would refinance. You could go to DCBU or local community bank and do a cash out refinance upto 450K or so however, the banks are super slow as there is a lot of demand for loans given the interest rates. Plus the community banks are taking upwards of 90 days to do cash out refinance so you have to be very patient.
Don't get discouraged there are always problems and solutions so I am confident you could do a cash-out.