Loan options moving forward

[Brian Plajer]

My brother in law and I have four properties together. The mortgages are in either his or my name and we quit claim deeded the properties into our LLC. We are reaching our LTI max soon. Question 1) Is there a way, when rates come down a bit, to refinance the mortgages into the LLC or do we have to sell them to the LLC. 2) Can the LLC qualify for commercial financing since the LLC holds the deeds and the equity on those properties?

thanks

[Andrew Postell]

@Brian Plajer congratulations on making it to 4 properties. That's awesome.  I'll answer these one at a time if you don't mind:

1) Is there a way, when rates come down a bit, to refinance the mortgages into the LLC or do we have to sell them to the LLC. - Yes, you can 100% refinance into mortgages that are to the LLC and not in your personal names. I would highly encourage you to NOT sell anything to anyone as there are tax implications in doing so.

2) Can the LLC qualify for commercial financing since the LLC holds the deeds and the equity on those properties? - Yes, the LLC and "qualifying" is very simple with those loan types. Most of the time those loans look for experience, income on your subject property you are purchasing, and reasonable credit history from the lead investor.

Hope all of that makes sense.