A better way to BRRRR? BRRRR by selling to a spouse?

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My wife sent me a TikTok Video that blew my mind. He outlines what essentially amounts to a BRRRR but with the caveat that the property is owned by his LLC and then sold to his wife. I assume this makes sense because the loan terms on a purchase are better than they are on a cash out refinance. Can anyone share any insight on this? I cant seem to find anything on this strategy from a mortgage lending, legal, or tax perspective.

Below is the link to the video 

https://www.tiktok.com/@mr_brr...