All Forum Posts by: Ashley Wynn

I personally would go with the conventional route because it increases my monthly cash flow. For the commercial loan, you would have to refinance every 5 years which you would be responsible for paying for the appraisal and any other costs associated with the new loan. This option isn't bad if your strategy isn't to buy and hold long term. 

From J Scott's 'The Book of Flipping Houses"

Good info Julee! I'm sending you a PM. 

@Lamontis Gardner, this is exactly how my husband and I set up our LLC. I was under the same impression as you in regards to conventional financing under an LLC. We currently have a potential deal, but looking for lenders that loan to LLC before pulling the trigger and unable to pull out our capital invested. The other option we know of is closing with hard money lender in LLC --> quitclaim deed to personl --> close on refi --> quitclaim back to LLC or trust with LLC as beneficiary. I'm hoping to hear from more seasoned investors that's gone through this process. @Whitney Hutten, would like to know more of your strategies. 

@Moises R Cosme, thanks for your insight. I would be upfront with the lender about the plan to quitclaim deed back to the LLC. The LLC is in my husband's and my name so I wouldn't think the lenders would have an issue with that if we're still the ones guaranteeing the loan. I know the option of transferring to a land trust does provide exemption from the due on sale clause so that may be a good route.

@Whitney Hutten, we not only want to pay off the hard money loan but also pay ourselves back for any capital invested like holding costs, fees, etc...so it's a true BRRRR. We would need to cash out refi. Our issue is finding banks that will refinance properties held in LLC that also have favorable terms. Those that we've found have terms that are very strict or cuts into our cash flow pretty significantly. Are the banks you're using backed by Freddie/Fannie? I've read the clause that will allow loans to LLC if property is transferred to personal name.

Looking to start BRRRRing, but after speaking with several local lenders in Alabama about refinancing properties held in LLC, it appears that most only provide adjustable loans with 15-20 years terms. These terms in addition to a higher interest rate greatly reduces the potential cash flow compared to a 30 year loan. Does anyone have experience obtaining a loan through a hard money lender, quitclaim deeding to personal name for refinancing through a traditional bank then either quitclaim deeding back to LLC or land trust with LLC as beneficiary? If so, how did this affect the loan with the hard money lender considering you're transferring ownership prior to paying off the hard money loan? Did this extend your seasoning requirement for the refinance? When in the process did you quitclaim deed to personal? Looking forward to hearing responses. Thanks.

Looking to start BRRRRing, but after speaking with several local lenders in Alabama about refinancing properties held in LLC, it appears that most only provide adjustable loans with 15-20 years terms. These terms in addition to a higher interest rate greatly reduces the potential cash flow compared to a 30 year loan. Does anyone have experience obtaining a loan through a hard money lender, quitclaim deeding to personal name for refinancing through a traditional bank then either quitclaim deeding back to LLC or land trust with LLC as beneficiary? If so, how did this affect the loan with the hard money lender considering you're transferring ownership prior to paying off the hard money loan? Did this extend your seasoning requirement for the refinance? When in the process did you quitclaim deed to personal? Looking forward to hearing responses. Thanks.

Does anyone have any suggestions on refinancing properties held in a LLC?

@Charles M. a possible rehab

Hi all, 

I'm looking for recommendations for general contractors in the Montgomery area. Thanks.