BRRRR Question

[Tony Castronovo]

Happy Father's Day! I am putting an offer on a property today and wanted to get some advice. My plan is to leverage the BRRRR (Buy Rehab Rent Refinance Repeat) strategy. I was going to buy the property under my LLC (I am buying cash and proof of funds is listed there). When I go to refinance the bank will want to put the loan in my personal name. So my question is whether this is still considered just a refi or whether I need to "sell the property from my LLC to me personally". Seems silly, but wasn't sure. If I had to do this then I would expect more closing costs. Looking for advice from those that have had similar situations.

[Chris Seveney]

The purpose for having an LLC is for protection - by having a mortgage in your name and the property in the LLC will provide you zero protection. If there was ever a claim, a good lawyer will pierce the LLC since it is not being used as a separate entity and is being commingled with your personal finances

In order for an LLC to provide protection it needs to be completely independent (separate bank accounts, all paperwork in the LLC and never transferred from your name Etc)

Please note I am not a lawyer or offering legal advice.