BRRR - How to put property into an LLC when I refinance

[Christine Watson]

Hello BP,

I would like to finance a BRRR project with HML. Will I be able to put the property into an LLC, when I refinance? Exactly, how can I put the property into an LLC. Many thanks.

[David M.]

@Christine Watson

Well, why now just purchase the property with the LLC when you start with the HML? Otherwise, when you refi you'd change Title to the LLC at the same time. The proper way is to have the loan in the LLC's name, not yours. Many people will have the loan in their name and quit claim deed the Title over, but is messy and potentially messes with your corporate veil.

You do realize that if you use a LLC, you will have to use commercial lending? Legal entities such as LLC's aren't eligible for conforming residential loans. "They" always gloss over that major expense to getting the limited liability protection.