Existing LLC invest in New LLC, & Cash Out Refi

[Devin Ye]

Hi All,

I am a real estate investor with currently one LLC and a cash flowing investment property full paid off. I am looking into pulling the equity from that property under LLC A and investing in another property that would eventually be under LLC B.

Question 1) Is commercial cash out refi my only option in terms of receiving $$ in exchange for equity? If not, what are other effective methods to get a loan just using equity?

Question 2) To protect my personal assets and to prevent commingling of funds, do I create LLC B and have LLC A obtain a loan and provide a separate loan to LLC B for LLC B to purchase an investment property? Are there any legal information I should be aware off? What other effective methods can I use to have LLC B purchase an investment property using LLC A's equity?

I am trying to prevent LLC A from purchasing another property that would essentially be under LLC B (in the deed) and etc.

[Devin Peterson]

Hi Devin! Local to you in CT - Hello from Middletown! Heres your answers:

1. yes, commercial cash out refi is your only option - just close under LLC A again.

2. you can close in LLC A and then form LLC B to purchase your new investment. Use the assets from LLC A to fund this purhcase.

DM me for more questions! gl!