I have a home that I want to buy through my llc.
Member since 2023 · 4 posts · 0 votes
I have a home that I want to buy through my llc.
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votesQuote from @Jason Williams:
I have an investment property that I own outright (in my personal name). I would like to buy my investment property through my llc, and use the money to pay off my primary residence. I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes.
Hi Jason,
It sounds like you are looking to do a cash out refinance on your investment property and quitclaim deed to an LLC at closing?
What exactly are you looking to pay off on your primary residence? If there is a mortgage on your primary residence and you are trying to deed your primary residence property to an LLC, you will need to check with your mortgage company if they allow it. Generally, most will not. Additionally if you are deeding the property you live in to an LLC you may lose the homestead exemption which could actually increase your taxes.
LuxePrivate Investments LLC 570 Reviews
7 Replies
- 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
Quote from @Jason Williams:
I have an investment property that I own outright (in my personal name). I would like to buy my investment property through my llc, and use the money to pay off my primary residence. I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes.
Hey @Jason Williams, welcome to the BP Forum! I'm confused. Are you looking to do a cash out refi on the investment property you own in your personal name? And what does your primary residence need "protection" from?
- 1yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Jason Williams:
I have an investment property that I own outright (in my personal name). I would like to buy my investment property through my llc, and use the money to pay off my primary residence. I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes.
Hi Jason,
It sounds like you are looking to do a cash out refinance on your investment property and quitclaim deed to an LLC at closing?
What exactly are you looking to pay off on your primary residence? If there is a mortgage on your primary residence and you are trying to deed your primary residence property to an LLC, you will need to check with your mortgage company if they allow it. Generally, most will not. Additionally if you are deeding the property you live in to an LLC you may lose the homestead exemption which could actually increase your taxes.
LuxePrivate Investments LLC 570 Reviews You'll still be personally responsible for the debt and it will still show up on your credit report/DTI if that's what you're trying to pull off.
You’ll increase your interest rate by 2-5%? Maybe more?
So those are the downsides…what upsides are you imagining happening? Why bother with the LLC? Why borrow against an investment property at a higher rate than you can against your primary?
There’s zero protection by paying it off. In fact you make yourself a bigger target for lawsuits. Did you happen to listen to a podcast or go to a seminar that’s leading you down a stupid path?
Start with why you want to do this. What are you trying to accomplish, what’s the upside to fight all the additional downsides I’ve pointed out?
- Member since 2023 · 4 posts · 0 votes1yI would like to buy the secondary house from myself through my llc, and rent it out, and use the money that I made personally to pay off my primary residence.
Quote from @Jaycee Greene:
Quote from @Jason Williams:
I have an investment property that I own outright (in my personal name). I would like to buy my investment property through my llc, and use the money to pay off my primary residence. I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes.
Hey @Jason Williams, welcome to the BP Forum! I'm confused. Are you looking to do a cash out refi on the investment property you own in your personal name? And what does your primary residence need "protection" from?
- Member since 2023 · 4 posts · 0 votes1y
Quote from @Jaycee Greene:
Quote from @Jason Williams:
I have an investment property that I own outright (in my personal name). I would like to buy my investment property through my llc, and use the money to pay off my primary residence. I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes.
Hey @Jason Williams, welcome to the BP Forum! I'm confused. Are you looking to do a cash out refi on the investment property you own in your personal name? And what does your primary residence need "protection" from?
would like to buy the secondary house from myself through my llc, and rent it out, and use the money that I made personally to pay off my primary residence.
- Member since 2023 · 4 posts · 0 votes1y
Quote from @Bill B.:
You'll still be personally responsible for the debt and it will still show up on your credit report/DTI if that's what you're trying to pull off.
You’ll increase your interest rate by 2-5%? Maybe more?
So those are the downsides…what upsides are you imagining happening? Why bother with the LLC? Why borrow against an investment property at a higher rate than you can against your primary?
There’s zero protection by paying it off. In fact you make yourself a bigger target for lawsuits. Did you happen to listen to a podcast or go to a seminar that’s leading you down a stupid path?
Start with why you want to do this. What are you trying to accomplish, what’s the upside to fight all the additional downsides I’ve pointed out?
I am looking to use my llc as if I were making a purchase of a property from a private seller, however I am the private seller. On the llc side I will rent the property that I purchased from myself, and provide myself some protection of my primary residence. The profits that I make from selling the primary property, will be used to pay off my primary residence
But there will be ZERO protection. You will be personally sued along with your LLC. There is nothing that could happen at your rental that wouldn't be your fault for not preventing, curing, fixing. Buy a simple umbrella policy. WAY cheaper than then thousands if not 10's of thousands in extra interest.
You are adding costs and complications for no benefit at all. If you truly just want your primary paid off you can just do a cash out refi on your investment, still in your own name, and pay off your primary. But this will cost you thousands and thousands in higher interest. (You'll pay higher interest because it's a rental property, and, if you try to do it in a corporation/LLC you'll pay an even higher interest rate.) And again, for no real benefit.
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