Fred, you don’t say where you are in PA, but there is a mrotgage co that will refi at 100% from a hard money rehab loan, Warrington Mortgage, you can find their phone at www.digonline.org click on the link to Corporate Sponsors.
In addition, if you refi and THEN transfer into your LLC, you will have to pay PA transfer tax twice, as the move into the LLC is a taxable event, going into another entity’s name. So, form the LLC first. Call your potential refi lender and explain that you want the loan to be in the LLC name. They may have a problem with that since it is a new entity and they are all suspicious of having an entity go bankrupt and they are leftholding the bag. You may have to agree to guarantee the note or be a co-signer on the loan, but make sure they understand that only the LLC name will on the title.
Hope this helps, if you have any other questions I’m a lawyer in SE PA, and might be able to help, email me off line.
Refinance before or after LLC - Posted by Fred Waller
Posted by Fred Waller on July 11, 2001 at 08:19:09:
I have a property that I rehabbed and am now renting out. I have a private lender 12% interest only payments loan on the property since April 2001. I would like to refinance and cash out my rehab costs. I would also like to establish an LLC.
Question?
Should I refinance first and then transfer into an LLC or vice versa.
Any recommendations on who to use to refinance in PA. Eloan ?? or someone that has had experience with refinance a recently rehabbed home before the 12 month seasoning issue
Fred, I can’t help you regarding the loan before or after LLC, but I can tell you that E-loan is not the best deal. My local mortgage companies and banks beat E-Loan’s rates soundly.