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Updated over 1 year ago on . Most recent reply

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Marcus Jimenez
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Selling as private owner to a 100% owned LLC via DSCR loan

Marcus Jimenez
Posted

Hell Bigger Pockets Fam, 

I am wondering if it is legal to sell an investment property that I am currently under my personal name to my LLC via a DSCR loan. This would transfer title to my LLC and allow me to technically cash out refi + force appreciation a bit. Curious if anyone has tried this.

Thanks! 

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Mark Munson
  • Lender
  • Orlando, FL
298
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434
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Mark Munson
  • Lender
  • Orlando, FL
Replied

Hi @Marcus Jimenez

I can't speak for every lender, but that is unlikely. It is a non-arm's length, meaning a purchase transactions in which there is a relationship or business affiliation between the seller and the buyer of the property. That is not allowed. Why wouldn't you just cash-out refinance into your LLC? That can be done.



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