All Forum Posts by: Jermaine Waldron

If I transfer a property to a Trust, would I be able to do a cash-out refi, HELOC, equity loan? Would I be able to leverage the equity into acquiring a multifamily or other rental property? Would that create a due-on-sale?

I currently have more equity than I owe on my mortgage, however I have a bad personal credit score. This has been a thorn in my side trying to access the equity. I am unable to qualify for a refinance, HELOC, loan, etc. I have even thought outside the box. I thought about a leaseback with my parents that would give them a rental property and not only help me to get out of the poor credit situation, but also allow me to fund real estate goals. Any thoughts of what I could possibly do is welcomed. Also, would hard money/private money or traditional lenders be able to use my equity as collateral or down payment despite my credit score? How can I get the equity from my personal home?

Hi, thank you for your response. Yes, it did help a little. I was looking for loans without credit checks due to my current credit situation, and have been directed to those types of loans. This is the first time a commercial loan has been advised to me; thanks. The transfer of title is for asset protection and acquiring of future investment properties, but my focus is really on pulling equity out of the property with my less than stellar credit (also removing the property from my personal name would lower my DTI - or so I was led to believe). My thought process was have the short term (6-12 month) private cash out, and be able to put proceeds towards credit repair and next investment property, and then go back to a bank/conventional to get out of the private.

My plan is to place my current residence in an LLC and utilize as a short term rental (AirBnb, VRBO, etc.) and also do a cash out refi. I formed the LLC, and then was notified that since I have an FHA, I could not quit claim deed the property to the LLC. I then thought about a private or hard money loan to purchase the property under the LLC, but would a private cash out refi be the best option? And then there's Dodd Frank. What is the best way to convert the property to the LLC and pull out the equity without credit being involved?