How to refinance a property under an LLC

[Sid Bobba]

Hi folks. We purchased our first property with cash under an LLC at a discount (~20%). We did not have to do any rehab as the property was in rent-able condition already. Now we want to refinance it and pull our money out for the next property. We have been talking to lenders and nobody seems ready to refi. I wonder whether it is due to the fact that the property in under LLC or time (wait 6 months)?

Any ideas/info to get refinancing is helpful.

Cheers,

Sudheer

[Andrew Postell]

@Sid Bobba I have 2 suggestions here:

1. Keep it in the LLC and use a commercial/portfolio loan to do a cash out refinance. The rate will be higher, or variable, or both, but you can keep the property in the LLC name.
2. Transfer it to your personal name, then transfer it back to the LLC name after you close on the "conforming, conventional" type of loan. If you bought this property with cash and don't have a lien on it then you can do a refinance on the first day you are on title on the property. There's a specific step to do this but if you are ok with being on the deed for about 30-40 days then you can do this option. You would then close, then place the property back in the LLC name.

If you have questions on either of these strategies then let me know and I can fill in the blanks. Thanks!