Buy all cash in LLC name, but carry a note

[Rajesh M.]

This is for CA.
Am in the process of buying a 4-plex all cash. Conventional loan was approved but some repairs
need to be made, which the REO bank does not want to do.

My goal is to be able to buy it all cash right now, and then refinance after making those minor
repairs. But I also want to make sure i dont get hit by the "Refi with cash out" and in the process
making the loan impossible or impractical.

A broker mentioned buying the property in an LLC (that I or my spouse owns) for all cash, but have
the escrow company create a NOTE, that I as the financier would carry.

Is this really possible? And would this get around the usual "refi with cash out" provisions for a
non-conventional loan?

[Ralph S.]

Not a banker, but, I doubt it.

Really think the bank won't know you're the owner, free and clear, and that you'll be taking cash out?