Have a 50% stake in a GA based LLC which was used to purchase a rental for cash in GA.
Approached the Bank to refinance the property. Bank says I would need to take the loan in my personal name.
Whats a good way to handle this.
If I quit claim the property into my name are there any income tax or transfer tax issues since its moving from an LLC owned by 2 members to just me.
Also how best do I get the deed back into the LLC’s name after refinancing the fact that the LLC’s has two members and the mortgages is in my name would that prevent me quit claiming it back to the LLC.
Would the bank be more likely to enforce the Due on Sale clause because the LLC has an additional member thats not on the loan.
Please any and all help would be highly appreciated
You’ll need a resolution to authorize this transaction since a partner is involved. Distributions to partners are not taxable transactions. Transfer taxes/fees would apply if they are used in your locality.
As long as the mortgage is getting paid, the bank won’t care.
This situation can avoid by holding title in a trust and then assigning the beneficial interest as needed. The public records do not change unless your locality requires the beneficiary to be named in the public record.
Approached the Bank to refinance the property. Bank says I would need to take the loan in my personal name.
Whats a good way to handle this.
get a new bank. there is no reason why financing cannot be done inside an LLC with a personal guarantee, although, a traditional “bank” probably will not do this. find a good broker; there ARE loan programs out there for this.
are there any income tax or transfer tax issues since its moving from an LLC owned by 2 members to just me.
yes.
refinance inside the LLC. much simpler and cleaner.