for your responce, I understand what you are saying about being on the hook for the loan and the LLC not having no credit that’s why when I applied for the refi
I told them I would personaly guarantee the loan.
Anyhow I just heard from my bank today that they have approved the loan and I should be able sign the paper work in about a week.
When I bought the house it was already in the LLC but next time I may put it in my name than transfer to my LLC or to a land trust and make the LLC the beneficiary
if the tranfer fees are not to expensive, here in MD when you buy the fees are killer so I don’t know if the same fees apply when your just transfering the title of ownership without a purchase.
I have a question on refinancing a house that I bought a few months ago, its my first deal so I could use a little help.
My house is set up in a LLC or I shoud say is owned by the LLC and it seams that could be a bit of a problem. I was told by one mortgage company that I may have to take it out of the LLC and put it in my nane to get refinanced because banks do not like to loan to a LLC.
My question is this, can I still get the property refi. with out taking it out of the LLC?
Posted by Ed Garcia on January 22, 2001 at 11:01:07:
Only if you can find a lender. I agree with the mortgage co that gave you the information. You see your LLC has no income (enough to qualify for a loan), no stability ( it has not been around that long), and no credit. Also the majority of the lenders want to make loans to individuals not entities. It can be done by adding your LLC after financing and establishing income and credit to your LLC. But for now, they want you on the hook.
Ed, what about personally guaranteeing the note? The title would stay in the LLC, and presumably the LLC would make the payments, and build credit history, while the loan would have Kevin as a guarantor (not a co-signer). I see that’s what Kevin did; does this work to build credit history in the corporation sufficient for lenders down the road?