Refinancing, Credit Score, LLC

Financing, Hard Money Lenders, Private Money
1

Hello, good day to all that read this post:

My business partner and I are considering cashing out 100% percent of our equity at the completion of a rehab. [If we cannot find a buyer within two months of the completed rehab. I have read that if an individual’s credit score is low, a lender may not allow you to cash out 100% percent of your equity. My inquiries are the following:

If my partner’s credit score does not suffice in order to cash out our equity completely, and his name is on the mortgage or note, can or will a lender under certain circumstances or loan programs allow the use of my credit score [which may be slightly higher than my partner] especially if the property is held in an LLC?

Can another option be that if the property is held in an LLC, and one business partner guarantees the mortgage/note via a personal guarantee, would it make sense to transfer the mortgage from partner a to partner b for the period of two months {the partner with the higher credit score}, then transfer the mortgage back to partner a?

2

Getting 100% cash out on investment properties can be possible.

Are you both owners of the LLC? I believe you mentioned he is on the mortgage himself.

It’s possible that he may be able to quit claim you on to the title then you could cash out.

3

Ben nailed it.

4

Thank you 4EEM and Investment Loans for your feedback. To Investment Loans, we are owners of the LLC. The LLC is also managed by a manager. Would the manager-managed structure of the LLC influence his ability to sign a quit-claim deed to me and allow me to perform the 100% cash-out? Thanks again for the information.

5

Your welcome, my pleasure!

I am almost certain that you can be quit claimed on to the title. Then a cash out refinance can be completed. The lender who does the loan will have to have a no seasoning policy.

There are several variabled that would determine if 100% is possible.

6

Thanks Investment Loans for providing additional information in regards to the refinancing topic. I really appreciate your assistance. Have an excellent day.