Can I buy a flip from my LLC?

[Malick Guindo]

Hello Everyone,

I hope you’re all able to maintain an edge during this pandemic.

So me and my girlfriend own our real estate company (LLC) together, we also live together in a condo thats under her name.

I’ve been flipping properties in Atlanta since last year, but now that we steady to move to a bigger place I want to use my knowledge to our benefit.

The plan is to:

1_sell our current condo 
2_buy a house that we can renovate to our taste using the same approach at 65-70% of ARV for purchase and rehab then

3_ sell the house to my girlfriend (she has great credit and a stable job)on a conventional loan with 20% DP.

Being that she’s a partner obviously all profits will go back to our pockets and basically get a house with 20% equity in when it’s all set and done. 

My question is would there be any issues obtaining a loan to purchase on a property she’s an investor/partner in?
Of course reçu is an option but it requires a year of mortgage seasoning since the new value is created, and we need the cash to do more deals asap.

Btw: Any lender is willing to do this deal, drop your number in the comments please.

[Bill B.]

Why do you want to pay the title company twice the title insurance twice,  appraisal twice, underwriting twice,  the short term capital gains tax that you wouldn’t owe as a person buying their primary, and in some states a transfer fee based on value, etc. 

You’re adding thousands of extra in costs and thousands in taxes.  Ps. You’d also pay higher loan costs and interest rate buying it with the llc as an investment rather than a primary. 

These are the downsides, what’s the upside you want to pay thousands of dollars extra for?