LLC Financing Question for a Beginner

[John Gullett]

Hello, newbie here. I have a quick question related to LLC's, title transfer, and LLC Financing.

What do you think about the following scenario?

1. Transferring title of an un-mortgaged, paid-off, property to a newly formed LLC.

2.Going to a lender to obtain a loan for the LLC entity, with no personal guarantee, using the recently transferred property (now owned by the LLC) as security for the loan.

3. Obtaining the loan, in the name of LLC, with no personal guarantee.

4. Quit Claim Deeding the LLC owned property back to myself after obtaining the loan.

Would this type of scenario work? Would I run into any problems?

I am nearing the point in my life where I would like to make my first deal, and this is my plan. 

All insights, comments, advice, and recommendations are sought, and greatly appreciated.

Thanks!

[Evan Polaski]

@John Gullett, you may want to ask this in the financing forum as well.

In my experience, that will not work. First, every lender I have ever spoken to would require a personal guarantee for the LLC loan, especially when the only asset of the LLC is a single home.

Second, quit claim deeding the home out of the LLC would likely be considered mortgage fraud.

Is there a reason you want this scenario?