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Updated about 8 years ago,
Can I refinance my LLC myself?
I own a single CA LLC (with a parent company in Delaware)that has multiple rental properties. Some of these are fully paid off. My question is about taking cash out to reduce equity exposures to lawsuits. First off, I already know about the multiple LLC's option to limit liability by having each property in anLLC. I am already covered with insurance and an umbrella policy. I know I can refinance the properties. Refi can be expensive with high rates plus I don't need the cash right now. I know I need to talk to a RE attorney and that's coming but I'd like to get other feedback first.
My question - Is there a legal way to record a mortgage on a property and make myself personally (not the LLC) the mortgage holder? No cash would exchange hands. The idea is to make the property appear to be mortgaged to a anyone looking to sue for equity in my company.
For example I may have 1 property in an LLC and it is fully paid off and worth 100k. Can I record a 100K mortgage at 0% on the property and put my personal name or personal non business trust account as the mortgage holder? Will this protect the equity interest in the case of a lawsuit? The first mortgage holder should have 1 st claim the property equity.
This seems too easy or maybe not legal but I can't find any info that explains why or why not this is a valid strategy.
Any info is appreciated