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Updated 9 months ago on . Most recent reply

LLC Transfer - for Loan
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.
Most Popular Reply

Yep - one way people get around this is contract for deeds. That is what we see alot of times, and not record the CFD (or sometimes they do), if I was buying it I would absolutely want the CFD recorded - but technically that is the owner giving up interest in the property and could trigger DOS so unrecorded is another way, but honestly not recommended.
- Chris Seveney
