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Updated about 2 months ago, 10/16/2024

User Stats

24
Posts
12
Votes
Olivier Chaine
  • Rental Property Investor
  • Oakland, CA
12
Votes |
24
Posts

LLC Transfer - for Loan

Olivier Chaine
  • Rental Property Investor
  • Oakland, CA
Posted

Somewhat unusual situation: we are in escrow on a property, and the current lender was going to underwrite the new loan. Due to complications in due diligence (seller financials), the only way that it makes sense for us is if we can assume the current debt, because it is below market rate, already underwritten etc. The lender is on board because it's in their best interests too. But they've asked to come up with a solution since the loan isn't technically assumable - something equivalent to acquiring the LLC that holds the property.

I've read enough to know that acquiring the LLC is a bad idea due to: unknown liabilities; tax liens and debts; loss of depreciation that has already been taken, and probably other reasons too. So not asking if this is a good or bad idea, because we aren't planning on doing it

Rather - what are creative solutions to do the equivalent of transferring the property without doing a direct property purchase, assuming all parties are on board including the lender?  multiple steps or extra LLCs are ok. 

And also, attorney recommendations appreciated too, as we would not do this without one that is well versed in the space. 

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