Refinance Mtg and Deed in our LLC into Personal Name w/Partner

[George Bittar]

Hello BP,

I wasn't sure where to place this question within the forum categories and figured I try here.

We finally completed our rehab and now into month 6, will be fully rented June 1st ( this is a 3 family). Property is held in the LLC and also the borrower for our HML with us as personal guarantors.

Seasoning requirements and the LLC are minimizing our ability to refinance into favorable terms and use the BRRR strategy. I found a lender who will go off market value at the 6 month mark, but need to move title out of the LLC into my personal name. I am not against this, however I own this property with my partner 50/50 and his credit will hinder our approval, meaning I would be the only borrower and he would just sign on title with me. I am not good with this for several reasons including I am personally responsible for this debt on paper, but he is going to benefit from continued ownership of this property, improved revenue and cash flow from this refinance and I am taking all the liability. I realize I can modify our operating agreement to reflect this transaction and his obligation, but it doesn't' sit the same way with me as if he were signing on the dotted line at closing.

Please share your thoughts and if I am overthinking this,but if something were to go south or future disagreements I feel like I would be left holding the bag in this scenario. Also,are there any legal or tax implications from moving or closing the LLC if moving into our personal names.

Thank you, 

George