Brrr Lending with tax id

[Brandon Cortes]

I have a question , I am a member of an LLC I have a ssn and the rest of 3 members work with a tax Id. What are some banks that offer a cash out refinance on a property? Or what is the recommended route to take?

[Cory J Thornton]

@Brandon Cortes - There are numerous ways to find debt and get a deal done. If the goal is to keep the property under an LLC, then you are most likely looking at one of the three following options.

1) Use a commercial loan. Local banks will give you debt for buying rental properties. I would expect the LTV to be around 75%, the interest rate would be between 6%-7%, the term would be 5-7 years, and the amortization would probably fall into the 15-20 year range. Sometimes, with a strong banking relationship, I have seen the amortization schedule stretched 25-30 years, but that is the exception, not the rule.

2) Use a DSCR product. This would allow you to originate the debt under the LLC and have 30 year fixed rate debt. Your interest rate on this product type will be higher. You will also likely have five years of prepayment penalties that could make it tough to refinance onto a better rate.

3) There are some investors that will secure the home with a conventional loan and then some time after closing, quick claim the deed under the LLC. Personally I have used option one and two, but I have not ever quick claimed a deed. This can be frowned upon by some lenders and if this is your intention, I would be sure the lender knew your plan up front.

I am not an attorney or a mortgage broker, these are just a few options I thought may work for you based on my experience. 

If you need help connecting with some potential lenders, I am happy to send you some recommendations. 

Best of luck on your real estate investing journey!