LLC Question (I'm sure this has been posted)

[Moises B.]

Does acquiring a property under your LLC make it complicated to refi? I don't mean the loan. Say the loan is under my name as an investment property, but the deed is under the LLC - will that complicate things at the time of refinance?

Or should I just place everything under my name, refinance, then transfer to an LLC.

Any input is appreciated.

[Caleb Heimsoth]

This has been posted about 100 million times on here in some shape or form. If you are refinancing a residential property with conventional financing then yes this will most likely (not always) make it more difficult.

Most people get around this by transferring the deed to their name, refinancing and then transferring it back. Probably costs 50 bucks each transfer but watch out for transfer taxes if your area has those.

If you do this, you risk the bank calling the note due (unlikely but can happen) because of the due on sale clause. Furthermore if you do this make sure you add the llc to your insurance policy.

As you can see this adds a lot of complexity that I personally don’t think is worth it for the small time investor

By time you get to commercial properties you’ll need an llc then anyways