I had (frankly still have) the same questions/concerns as you.

Now, if you are passively investing and someone else is managing then an hour away is much less of a concern.

The only reason I want it in the LLC name is for asset protection from everyone else, I"m not concerned about protection from the lender.

There are lenders who are not concerned but those lenders will charge higher rates, have poor terms and pre-payment penalties in many cases. 6 or 12 months seasoning will open up all the normal lending options.As Scott mentioned you really need to understand the refinance assumptions before heading down this path.If you want to pay commercial rates and terms many commercial programs will let you use the appraised value.

Not a deal you would do if you were investing going forward but better to hold than sell once you are in.It is concerning that you largely have no idea what to do with the money you might pull out other than pay down the primary mortgage.

The borrower is a corporate entity.There is also a lot of scams on the Internet concerning MTNs.

As a followup to my initial post, the costs will not inhibit me from setting up properly - I'm more concerned with the most advantageous setup that provides the most benefits... even if it costs more.

My experience says they are more concerned about the quality of the offer and the bottom line number then they are about if they get some loan business.

Guess I'm just surprised that she really isn't concerned with that if we can just keep the foreclosure from happening.

But I don't believe that Lee does... yet.Please email me if you have any questions concerning this post.darryl dean"We Buy Houses Nationwide / Rehabs & Rentals Wanted!"