I want to do a cash out refinance for a property under an LLC

[Ariel Hernandez]

Happy Holidays BP members!!!

I've been slowly acquiring a few rental properties using profits from my primary auto collision business. I contemplated selling a 3 family  house in Newark NJ and use the funds to a different product. Instead of selling a friend suggested I should look into a cash out refinance and hold on to the property a little longer since the rents should cover the loan. 

I've done some research and started the initial process with one company but find the interest rate of 6.50% to be a little high specially when they are using 60% LTV.

Are these rates fare for loans given to an LLC?

Any other finance option I should consider?

Thanks in Advance 

Ariel Hernandez 

[Laura Williams]

@Ariel Hernandez That interest rate sounds about right for an LLC loan. I just got a portfolio loan renewed at 5.75% fixed for only 3 years which was before the recent interest rate went up so it would probably be more now. A couple weeks ago I was quoted 7%-8% for 30 year fixed LLC loan from a couple different lenders. The best I found for a fixed rate 30 year LLC loan was a bank that could do mine for 6.2% with 2 points and 75% LTV & this bank doesn't look at tax returns. The one good thing about the LLC commercial loans is that they are alot less strict & easier for paperwork than Fannie and Freddie.