Removing Partner from LLC or Change Deed for Financing Reasons
Here are the details of my situation, we are having challenges refinancing out of our hard money loan because of my partners credit and he is 50% owner of the LLC we own the property in. Most of the lenders I have met with have options only if he resigns from the LLC or else he would also have to be a guarantor and his credit will not qualify to guidelines.
My questions are:
-If he is removed from the LLC, how else can we secure his interest to get this refinance done?
-Another option has been to move the deed out of the LLC into my personal name and allow the LLC to manage the property and pay the debt which would leave him on as is. What implications will this have from a legal or tax perspective if we move the LLC debt into my personal name?
Thank you in advance and open to any other possibilities to solve this puzzle.
George