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How can I get a mortgage for a property I own under an LLC?

I own a property bought cash in the name of my single-member LLC. I'd like to take a cash-out mortgage or HELOC to be able to leverage my cash for more purchases. How can I find a lender to lend to the LLC?
  • February 22 2012 - Glendale
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Answers (9)

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I can help you with that, we will lend on property held in an LLC and we have no seasoning requirement for cash out.  We can also cross collateralize your existing property with a new purchase of a fix and flip or buy and hold. 
  • February 23 2012
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My LOCAL bank loans to me on properties held by my LLC. Just find a bank that will work with you. i.e.; not a local branch of a national chain.
  • August 25 2013
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You could use private funds or Hard Money. They prefer that you keep it in the LLC name. Most lenders will go up to 65% of the value of the property. Rates range from 8 to 20%, depending on the loan amount, the type of property, credit rating, location of property etc. The lower the loan amount, the higher the rate. 

These lenders charge points at closing ranging from 3 to 8 points. Some charge fees up front. In most cases, they do not like refinance loans. They prefer to help you buy. Their fear is that you'll take the money and run. Therefore, a higher rate. 

In most cases, your credit does not determine the ability to qualify. It mostly based on your ability to pay the loan back and the equity in the property. There's not a lot of "red tape" in getting it closed (averaged bank statement deposits in lieu of tax returns, for example).

These loans generally amortize for 30 years with no pre pay penalty and balloon in 2 to 5 years. 
  • March 11 2013
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Profile picture for Academy Mortgage AZ
Contact a local community bank.    What State is the property located in?

Thanks

Julio
  • March 11 2013
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Profile picture for westend9876
What is your contact information?  I am interested in a cash out refi on an investment property held in an LLC.
  • March 06 2013
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Try talking with your bank for starters and go from there. If they can't assist you they will most certainly be able to refer someone you can.
  • February 23 2012
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In order to do a cash out refinance or Home Equity loan you will have to remove the property from the LLC holding for 6 months, obtain financing as an individual and then place the property back into the LLC.
  • February 23 2012
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Profile picture for shapiroamg
I think you will find it very hard to get a loan as a LLC. Most lenders want individuals as its easier to collect if you dont pay.
  • February 23 2012
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Profile picture for user767449
A home equity loan, also known as a second mortgage, allows homeowners to borrow money from their home's available equity. These are commonly used for debt consolidation, home improvements, educational expenses, unplanned emergencies, vehicle purchases, and other gifts and purchases.

Home equity loans are a popular financing option for homeowners who need additional cash. These loans usually offer a lower interest rate than credit cards. In addition, the interest you pay may be tax deductible

The two most popular types of home equity loans are a home equity line of credit (HELOC) and a home equity fixed loan. If you do decide that a home equity loan is right for you, remember to do your homework. There are a variety of loan options available so it's important that you compare lenders and rates in order to find the best deal.

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  • February 23 2012
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