Purchase the LLC rather than the Real Estate?

[James G.]

Hi BP. I’ve been in contact with a new lender who is telling me that there is a strategy that he uses where he buys out the company, rather than the real estate itself.. he says this way, the lender can give me a loan based on the appraised value rather than the purchase price. Also he says we can treat the transaction as a refinance this way rather than a purchase.. he says this can be very beneficial for me if the seller agrees, and that there can be tax benefits . Has anyone ever heard of this? Is this a legitimate strategy?