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Updated over 3 years ago,
Can one of your LLCs purchase the property of another LLC ?
I had watched a YouTube video of Clint Coons regarding creating a WY LLC holding company which in turn owns your individual LLCs to provide anonymity. This sounded like a great option.
However when it came to the portion where the discussion of attempting to transfer in other properties and refinancing any existing properties, it became *very* complicated and just looked like a whole tangled mess of legal fees and a jumble of paperwork involving land trusts, living trusts, etc.
Then I thought to myself. Why can't property owned by another LLC(non-anonymous) just simply sell its property to the anonymous LLC?
What I mean is this:
LLC #1 (non anonymous) holds Property - Lets say it has 100K of equity and is valued at 200K
LLC #2 (which is one of the several anonymous LLCs under the WY holding company)
Then LLC #1 sells the property to LLC #2. LLC #1 cashes out 100K of the equity, while the property is now owned by LLC #2 with a loan.
Would this not in essence be a cash-out and refi, with the bonus of the property now being anonymous under the WY LLC holding company?
I would love to hear from anyone, but certainly would appreciate a view from either a lender or someone with legal experience. I hope that my description above is not too confusing.