Posted on: 17th Jan, 2010 06:06 pm
i'm a member of a 3 person llc in oh. we own 6 rental ptys all with the deeds in our llc and the loans in our personal names. we need to refinance them to a lower rate because we are have difficulties in securing tenants due to the monthly rents we must charge just to cover our mortgage payments. we've been told if we refinance with the deeds in our llc this will throw up a red flag with the banks. why is this and can we do this? or do we need to transfer the deeds to our individual names to refinance?
Hi theodons,
As far as I know, it'll be quite difficult for you to refinance the loan when the property is in an LLC. You may have to personally guarantee the loan, and qualify for it as well. There are chances that you would be getting a commercial loan. These loans are mainly available at a higher rate and for a shorter term.
As far as I know, it'll be quite difficult for you to refinance the loan when the property is in an LLC. You may have to personally guarantee the loan, and qualify for it as well. There are chances that you would be getting a commercial loan. These loans are mainly available at a higher rate and for a shorter term.