Can I personally purchase a house from my LLC
Rental Property Investor · Dallas, TX · Member since 2015 · 283 posts · 179 votes
Can I personally purchase a house from my LLC
Most Popular Reply
Lender · Denver, CO · Member since 2015 · 404 posts · 227 votes
9y@Logan Turner This is somewhat of a quirk in conventional underwriting guidelines, but I do know of a lender who will do a conventional Fannie Mae backed loan in this scenario if you are the 100% owner of the LLC and you quit claim the property into your personal name. They will allow you to cash-out under these circumstances with no seasoning. I have never run across another lender who will do this, because 99% of lenders interpret the guidelines to say you must season for 6 months. I know they will do it because I closed a loan about 2 months ago with this exact scenario here in Colorado and I'm about to do another one. Perks of being a broker. ;)
I'm not licensed in CA, but I may be able to hunt down a broker connected with this lender who will do the loan for you. Can't guarantee anything, but shoot me a pm if you want me to do some research for you.
40 Replies
- Member since 2018 · 32 posts · 11 votes6y
Hi Logan, thank you for posting this great question. I am curious how did things work out for you. We have a new construction SFR project under our C corporation, where my husband and I are the only shareholders. We used a hard money lender. Project will be done in a few months and we would like to purchase it for our own residence. Could we sell it to ourselves or would we have to refinance it using a conventional loan where we would put 20% down.
- Real Estate Agent · Beaver County/Cranberry Twp, PA · Member since 2018 · 18 posts · 8 votes6y
@Jared Bouzek Can you please send me that lenders name.. I think my partner and I may also want to do this. Thanks!
- Rental Property Investor · Sacramento, CA · Member since 2017 · 36 posts · 22 votes6y
I've done this and it does not require seasoning. I purchased with HML in SMLLC. Did rehab and rented the house out. 6 months later, I deeded the house from LLC to myself. Then, I did refinance. After that, I deeded it back into LLC. It did not require seasoning at all. The only thing that held us up was title transfer, I think the county is slow or something. They have a "verified through" date and it took about 10 days before new title was recognized so I could close the loan, and then ~10 days again to deed back to LLC.
- Rental Property Investor · Sherman, TX · Member since 2019 · 49 posts · 21 votes6y
Originally posted by @Logan Turner:
@Lia Martinez i did find a lender able to refinance 75% of the LTV. @Jared Bouzek was awesome and connected me with a broker out of Texas, who then found a lender.
I'm in TX too and need access to this lender! Can you PM me? :)
- Member since 2021 · 1 post · 0 votes4y
Hello All, I see that this thread is 4 years old. Any idea if this is still a possibility? Could we quit claim the house to ourselves personally and then refinance. We did a Reno that we ended up liking a lot and we really wouldn't mind moving in.
- 4yJillian KemmererPro MemberReal Estate Agent · Scranton, PA · Member since 2021 · 55 posts · 25 votes
Funny - I was just thinking about this sort of thing. I am about to fill my LLC owned (with my husband) duplex with renters. Wondering if quit claiming the deed back to myself evntually and the refinancing it under a non-commercial loan makes more sense in the long run? We do see this as a long term hold, though.
In PA. Any thoughts and inputs? Quote from @Richard Melendrez:
Hello All, I see that this thread is 4 years old. Any idea if this is still a possibility? Could we quit claim the house to ourselves personally and then refinance. We did a Reno that we ended up liking a lot and we really wouldn't mind moving in.
Hate to bring such an old thread alive. However does anyone have any experience with this situation as of recent. We have a SFR we deeded to our LLC and would like to do a cashout to flip the property. Any feedback would be greatly appreciated thanks.
Quote from @Mike Ross:
Quote from @Richard Melendrez:
Hello All, I see that this thread is 4 years old. Any idea if this is still a possibility? Could we quit claim the house to ourselves personally and then refinance. We did a Reno that we ended up liking a lot and we really wouldn't mind moving in.
Hate to bring such an old thread alive. However does anyone have any experience with this situation as of recent. We have a SFR we deeded to our LLC and would like to do a cashout to flip the property. Any feedback would be greatly appreciated thanks.
couple of things:
1. You can easily finance a property in a LLC these days.
2. but, you say you want cash out to flip? Why would you pay for closing costs etc of a loan to turn around and sell? Would be using the cash to fix up the place?
Hurst Real Estate, INC4.991 Reviews- Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes2y
Quote from @Logan Turner:
Ok weird question everyone, but I made the mistake of purchasing the last house into my LLC. So now I'm only qualifying for commercial type lending when I still can get more Fannie Mae loans (lesson learned) Transferring the title from my LLC to my own name will take about 6 months to season before I can do a cash out refi. I have 85k tied up in the deal. So I want to get it out to re-invest. Can I purchase the house in my own name, from my LLC, using a lender 30 year fixed rate financing? Assume i sell it for fair market price, and with 20 percent down, pay title insurance, appraisal etc. will a bank allow this? If not, am I able to sell the house to my Dad, who is not affiliated with the LLC in any way?HI Logan since you're presumably the owner of this LLC 100% (or over 51% is the rule) your ownership in the LLC will trace over to your personal name so you dont have to wait another 12 months (yes now it is 12 months title seasoning when buying new to cash out refinance prior it was 6 months title seasoning, not anymore).
So basically as long as you can document you're the manager/member of your LLC the time held as a LLC is still going to count.
You will just qualify for the cash out refinance Fannie Mae like any other cash out refinance and at closing you'll close and QCD or quit claim deed it over from your LLC ownership to yourself as an individual at close.
Just be careful some states charge you transfer taxes even between yourself and your own entities, sometimes this is just the cost of doing business. We’re licensed in 12 states currently so we’re always having to be cognizant of the title transfer/deeding costs of these situations.
Best of luck and hopefully that addresses your question.
- Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes2y
Quote from @Mike Ross:
Quote from @Richard Melendrez:
Hello All, I see that this thread is 4 years old. Any idea if this is still a possibility? Could we quit claim the house to ourselves personally and then refinance. We did a Reno that we ended up liking a lot and we really wouldn't mind moving in.
Hate to bring such an old thread alive. However does anyone have any experience with this situation as of recent. We have a SFR we deeded to our LLC and would like to do a cashout to flip the property. Any feedback would be greatly appreciated thanks.
Yes Mike I replied to
@Logan Turner it is not a problem doing a conventional Fannie or Freddie refinance from time under a LLC held vesting or title transferring to your personal name, the one nuanced point is that Freddie Mac requires you to be the 51% or more owner of the LLC to do this while Fannie does not (any ownership under Fannie still counts as long as you can prove you were manager/member).
Good luck on your refinance should you decide to proceed with it.
- Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes2y
Quote from @Jillian Kemmerer:
Funny - I was just thinking about this sort of thing. I am about to fill my LLC owned (with my husband) duplex with renters. Wondering if quit claiming the deed back to myself evntually and the refinancing it under a non-commercial loan makes more sense in the long run? We do see this as a long term hold, though.
In PA. Any thoughts and inputs?Hey Jillian,
It just depends on your cost of capital and risk preferences typically commercial bank or local credit union commercial loans or investment loans have balloon features (are not 30 year fixed) and have typically higher rates than conventional financing (Fannie Freddie, not always but typically).
So you have to compare the pros and cons of cost, features, your intended use for the money and if it meets all your parameters then you execute your decision without looking back.
- Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes2y
Quote from @Richard Melendrez:
Hello All, I see that this thread is 4 years old. Any idea if this is still a possibility? Could we quit claim the house to ourselves personally and then refinance. We did a Reno that we ended up liking a lot and we really wouldn't mind moving in.
Yes Richard It is possible
- Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes2y
Quote from @Tecsia Evans:
Hi Logan, thank you for posting this great question. I am curious how did things work out for you. We have a new construction SFR project under our C corporation, where my husband and I are the only shareholders. We used a hard money lender. Project will be done in a few months and we would like to purchase it for our own residence. Could we sell it to ourselves or would we have to refinance it using a conventional loan where we would put 20% down.
HI Tecsia,
Your scenario is different than the OP above.
You own your property in a S-Corporation and ownership by a corporation is viewed differently by the agencies (FHA/Ginnae Mae/FAnnie/freddie/conventional financing).
It’s viewed as separate ownership and I’ve done a few of these purchases whereby the property is purchased from the borrowers wholly owned S-corp as a primary or investment property.
This can be done when the property is held by a corporation (S or C subchapter) but has not been as successful when it was held by a partnership/LLC/or LLP in my experience. Im always up to test the forefronts of lenders interpretation so if you have further questions feel free to DM me directly.
Hope that helped.
Quote from @Jay Hurst:
Quote from @Mike Ross:
Quote from @Richard Melendrez:
Hello All, I see that this thread is 4 years old. Any idea if this is still a possibility? Could we quit claim the house to ourselves personally and then refinance. We did a Reno that we ended up liking a lot and we really wouldn't mind moving in.
Hate to bring such an old thread alive. However does anyone have any experience with this situation as of recent. We have a SFR we deeded to our LLC and would like to do a cashout to flip the property. Any feedback would be greatly appreciated thanks.
couple of things:
1. You can easily finance a property in a LLC these days.
2. but, you say you want cash out to flip? Why would you pay for closing costs etc of a loan to turn around and sell? Would be using the cash to fix up the place?
@Jay Hurst we would be using the cash to rehab and flip.
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