2 members have 50/50 ownership of a sfh investment in a LLC; deed is under LLC. Loan is under 1 members individual name. The 1 member in LLC (who is not on the loan) wants to assign interest to another investor.
Would the loan get impacted at all or not since the loan is in the individual's name that will still be part of the LLC.
Also, once the LLC is assigned, can the property be refi'd under the new members individual name?
Any attorneys that can help with this document preparation? Property is in Texas.
Attorney · UT · Member since 2025 · 55 posts · 46 votes
1y
You will want to review the Operating Agreement for the LLC to see how assignments of interest or transfers are supposed to happen.
Generally, LLC partners are not able to just assign their interest to another party without approval of most/all of the members. The operating agreement may have some guidelines or exceptions.
After the LLC membership interest is assigned to the new member, you will need to work with the lender on refinancing. There is a good chance that the lender will want the property in the new member's name before doing a refinance in the new member's name.
It might be possible that the LLC does the refinance and all the members are personal guarantors.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.