BRRRR refinance with LLC

[Steven Tawresey]

Good morning BP! It's been a while since I've posted. Been very busy with work and with Real Estate. I've recently run into a snag and looking for some advice on how to get past it.

I bought a house in Denver with my LLC, a hard money loan and a plan to BRRRR it. I'm almost done renovating, will rent it in short order, and I'm ready for the refinance part. My hard money lender has agreed to write the note for 75% of the ARV for a rate and term refinance, and will pay me the difference between the amount I borrowed and the amount of the buyout. I'll be leaving about $40K of my own into the deal.

That was the plan anyways. What I'm finding out now is that Fannie and Freddie won't loan to LLC's? My broker says I should quit claim it to my name, refinance, then quit claim back. Seems like a lot of exposure and opportunity for the bank to call the note due. Furthermore, it seems like a shady way to do business. I know that I'm not the only one in the country doing this and I'd like to do it the 'right' way.

I reached out to Lending One who quoted me 7%. Ok... that's one way to do it. But that kills my cash flow.

So, how is it done? 

Thanks in advance for your replies. 

Cheers!