Cash-out Financing - Posted by BAK

Posted by BaK on November 27, 2008 at 15:33:50:

Ok…Can somebody tell me if they can name at least one Lender (preferably 3) in the Pittsburgh area that will loan to my LLC, without requiring my keeping the property longer than 3 years, which is what I am hearing…this BIZ is not what it used to be! If I can’t get a commercial loan, then I have to use my own personal financing, which will make things more messy and limited. Bruce

Cash-out Financing - Posted by BAK

Posted by BAK on November 25, 2008 at 19:37:40:

Hello friends,

Can somebody suggest the best and most likely avenue I should pursue with regard to pulling out cash vis-a-vis refinancing for a duplex that has just undergone rehabbing? Should I pursue a loan in my LLC name ( I understand it must be commerical if through my LLC) or my own name, and then make a contribution to the LLC to pay off it’s debt ($ borrowed to purchase property and cost of repairs)…I bought the property only 2 months ago. Bruce

Re: Cash-out Financing - Posted by Ben Carmona

Posted by Ben Carmona on November 26, 2008 at 07:46:22:

You’ll need to use a commercial/business loan. This typically requires a score of 680+, full doc, debt service 1.25+, and global debt service ratio of 1.6+. Each lender will have a sligh variance on this. Best to consult with someone who understands commercial financing so you can have a good first impression with the banks.

Ben Carmona