Having Trouble with the 3rd R in the BRRRR Strategy? Me too

[George Hoover]

So I bought a 3/1 SFH in Sheffield Lake, OH (west of CLE) with a private hard-money secured loan titled in my LLC. The private lender is using money from his self-directed IRA. The terms of the loan are 12% and P&I will be paid back in 1 lump sum at refinancing. No monthly payments are being made.

I put about $21k into it and rented it out for $895/mo + all utilities in 2 days after about 4 months of rehab.  My tenant has been paying me rent religiously for 4 months via ACH.  Pretty cool.  

Now it's time to refi. I need a 30-year fixed rate with 70%-75% LTV. I have spoken to a number of small and regional banks in the area including a credit union and they are all putting up 1 or 2 of the following walls:

1. The home needs to be deeded in your personal name for 6 months in order to season
2. You need to show 6 months of monthly payments to your lender
3. 12 months seasoning in order for the LTV to be based upon appraised value instead of purchase price

So now I feel like I may only have a few options while my 12% interest is accruing:

1. Try to renegotiate more favorable terms with my private hard money lender
2. Change the deed into my personal name and suck it up for another 6 months. That means I lose my LLC protection and have to take out an umbrella policy in order to provide extra coverage

Going forward with my next rental, I'm thinking I need to title it in my personal name and make sure I make payments to my lender.

Let me know if you are going through this same issue or have went through it and how you came out.  I would love to hear some ideas.

Thank you!