Finacing question - Posted by Russ L

Real Estate Investing Real Estate Financing
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Posted by Ed Garcia on September 04, 2003 at 10:33:54:

Russ,

The answer is yes; your LLC is a separate entity. However I think that what Mark said is right on, when it comes to the credit worthiness of the LLC. With a new LLC you would be required to sign personally in order to secure financing with your LLC. Also you will illuminate most mortgage companies who lend to individuals and not entities.

Mark had suggested for you to contact an attorney. The reason he did was because to some, this type of transaction may not be considered arms-lengths, for others, they may not have a concern because it is a common practice. My suggestion is if this is what you want to do, then find a lender to lend to your LLC without you personally guaranteeing it which would have to be a small local portfolio lender, and go for it.

Ed Garcia

2

Finacing question - Posted by Russ L

Posted by Russ L on September 03, 2003 at 21:03:17:

I have a house i have had for almost a year, and i was thinking about refinacing the property… but i was wondering can i sell the property to me?
The house is in my name and i want to sell it to my LLC for curent market value. Basicly what i’m asking is can i sell the house to an llc i own instead of doing a typical refi of say 80%, in other words get 100% now and have my llc own it???

Thanks,
Russ L