Cash-out refi question

[Jess Azong]

Hello! So, friend bought a property cash under their name and now refinancing (cash-out refinance) the property into an LLC that is jointly owned by both of us. The lender insists on paying the proceeds or the cash-out amount to the LLC and not to the friend's personal account. My questions are: Are they any implications (tax or otherwise) if after the funds are paid into the business account and my friend writes a check to their personal account from the LLC to get his money out? Alternatively, what's the best way for my friend to get their funds back without any tax implications (if any) for him and business?