I 'm thinking of pulling cash out of a SFR which i own full and clear (no debt) in order to use as a down payment for another purchase. However, the SFR is in an LLC and i am told that the house would need to be under my name and no longer the LLC. How risky is that , and does that seem like a good idea?
I would shop around and talk to a few different lenders prior to going through with this. You may find one that doesn't mind lending to an LLC.
The answer to your question would depend on a whole host of facts not available, and only a licensed attorney in your state should be the one answering. That said, some general principles one should consider when doing this, is that it may open your corporation up to liability if you are transferring assets around all "willy nilly". These kinds of transfers also typically will spark tax consequences because it is a transfer, and both the corporation and yourself will have to face tax repercussions.
The answer should be thoroughly discussed with a licensed, local attorney.
thanks for the feedback
It's pretty simple. You just need to deed it over to your personal name first. And then you can proceed with the refi.
It's not risky even if you did move it into your name because you're not very highly leveraged
hi vincent - would you please explain what you mean exactly by not very highly leveraged. thank you
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