Transfer property ownership & cash out refinance it.

[Meir Greenblatt]

I'm looking on getting 2 properties from a friend that he needs cash for other business but he can't do a mortgage, and I'm looking to buy some property's, so I was wandering if I can open an LLC and then have him transfer the units to me/LLC, then immediately I got and seek a cash out refinance of 75% or more, then I will give him the cash I got, and the other 25% he will carry as a private note.

Is it possible to refinance after a title transfer? Is there anything illegal with all this? What kind of professional will be best to work me through it all? is it a lawyer? or a loan officer? or maybe the title company has someone?

I don't have a lot OF cash on hand and my debt to income ratio is not so good so I may be able to get a regular loan but it will take a long time.

It is a good deal since its in Houston in the LOOP in an area that is appreciating fast, and I will have a 5 year lease secured with all the transaction, allowing me to cash flow $300 $600 a month with no money down. (The rent and purchase price is still TBD)

[Chris Mason]

Originally posted by @Meir Greenblatt:

@Chris Mason

So I guess if I want a good rate then I should go get a Fannie loan and they require at least 6 months.

But if I don't care much about the rates for the 1st year can a hard money lender refinance in less then 6 month?

 Sure, a hard money lender can do what they want, they aren't bound by Fannie rules.