Refinancing Strategy Advice

[Paul Jurczyk]

Hello 👋

I bought a 2 family house in Harrison NJ last year and am looking to refinance. Ideally, I would like to do a cash-out refinance. The property is owned by an LLC of which I am the sole proprietor.

I reached out to a couple lenders and they're quoting me between 5% and 6% for a 30 year, which feels a bit high to me - but at the same time, I hear that may be pretty standard for commercial loans?

So I'm wondering if there may be some strategies I should consider? For example, I was thinking if it would maybe be possible to refinance the property under me directly in order to get a lower rate, and then transfer the property back under the LLC asap, keeping the same rate?

From my understanding, some lenders will call the mortgage at the point of transfer, while others will let you transfer without calling the mortgage - so in theory, I would just need to find the right lender? Has anyone done something like this successfully? Or tried and failed? Does the fact that it's a cash out refi rather than a traditional refi make it more difficult?

I should be able to do a cash out of hopefully around $100k and am excited to purchase my next property, but I also want to make sure I'm not leaving money on the table by paying too high of an interest rate. I have a rather high interest rate right now, so if I can manage to refinance at a rate below 5%, I should be able to cash out $100k and increase cash flow on the 2 family.

Any other strategies that I should consider?

Any advice (or intros...) would be much appreciated!