Refinancing into 30 year mortgage with LLC’s name

[Geoffrey Giannone]

Hi everyone!

I just recently bought my first rental property and rehabbed it with a partner of mine. Looking ahead, we hope to refinance it into a longer term mortgage with lower rates than we currently have. However, our goal is to have this in an LLC when we refinance. We have heard that banks do not give LLC's 30 year mortgages.

We have heard that some people refi the property in their personal name and then transfer the title to the LLC's name in order to get the 30 year mortgage. Is this common practice? And if so are there any issues that could arise from doing this? It seems like transferring title without the bank knowing is a bit of a gray area. Any thoughts would be appreciated.

Thanks in advance for any answers and advice.