You may have a problem with it not being an “arms length transaction”....ask a lender.
@Chris Mason ??
Originally posted by @Jen Starner :
Hi. I’m REALLY new to real estate investment.
Initially, I wanted to buy a small condo at auction, fix it up and rent it out to start out in this industry. However, my landlord let me know he is looking to sell the house I rent from him. Now, I am looking for a house to renovate for myself and have recently started an LLC (with another person) for my new endeavor. My question: can my LLC buy a property, fix it up and sell it to myself (as a private buyer) with a conventional loan? I would be using a VA loan once I completed reno. ALSO- The property I am looking at looks like it could generate about $80k profit for the LLC... would that be legal?
How can you sell something to yourself? That doesn't make sense.
Fannie Mae does not view "LLC" as a magic word, the way late night infomercials might. If you own a potato and the potato owns a carrot, that means you own a carrot. Potatoes aren't people.