Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes
I have two single-family investment properties that were purchased in the name of my LLC. One was purchased in cash and the other was purchased with a mortgage through a local credit union @ 6.75% for 15 years.
Given that rates are very low, I would like to get as much cash out of these two at ~4% and use it to pay down my debt at 6.75%. I understand I will need to transfer the properties into my personal name via quit claim deed. Are there banks that will allow me to bypass the requirement to wait 6 months? I talked to Aimloan and they said for a property that was originally purchased in my personal name and later transferred to the LLC, I could transfer it back to my personal name and immediately refinance. It sounds like every lender has their own requirements.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
Every lender will have their own rules for this sort of thing. Since you were able to originally purchase this in the LLC with a mortgage, I would imagine that you could also do a refi in the name of the LLC. I'm doing something similar now, and have found a bank willing to give the LLC a loan in the mid-4% range.
Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes
14y
That's a great rate for a business loan! I ended up going back to the credit union that is the original lender and asking if there was anything the could do for me. They offered to do a rate mod with a variable rate of 5.25% fixed for 5 years, with the same 15-year amortization. I had about 12-13 years left on each of these and if I pay the same payment I was paying at the 6.75% interest rate, I'll be able to pay these off in about 10 years, so I'll only have to worry about one adjustment.
The really great part is that over half of my rentals will be paid off in 10 years, when I'll be 42. Early retirement maybe? :-)
Real Estate Agent · Cheyenne, WY · Member since 2009 · 205 posts · 51 votes
14y
I forgot to add, I have $425K borrowed through this credit union and they are charging me only $3K for the rate mod fee. No new title, appraisal, nothing. B/E is 6 months.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
14y
You posted twice to my one, LOL, so I didn't see the above replies....edited
There are about as many loan programs as there are banks, what a lender will be consistant about will be along the lines of prudent lending practices and what is generally accepted. A portfolioed loan, a loan held by the lender can pretty much make any loan that does violate a written loan policy they adopt. A secondary market loan will have stipulations and cash out refis on non-owner occupied properties are tought to get, most of the time I was doing loans, they were not allowing them at all, that may have changed, but I doubt it.
Best to simply ask your lender and see what they want you to do. You may not be getting that low advertised rate on such a refi. Good luck...