Land trusts, LLCs, and Refinancing

[Jim Brozny]

Hi Everyone – I've recently entered into a land trust with two partners to purchase and flip an SFR. Since the closing, two of us have decided to keep the property and buy out the third partner. Now that we plan to hold, I'm inclined to dissolve the land trust and create an LLC. My attorney agrees (via a brief email conversation).However, I'm wondering if there are any implications. Specifically, we purchased the property with private money with a term of one year. We'll need to refinance in order to keep the property. I've read that banks won't provide a loan if a property is in an LLC.

Would you recommend my partner and I retain the land trust or create an LLC?

Thanks.