Pulling Out Equity?
In todays market, what is the best way to pull funds out of a free and clear property?
I have a property purchased by my LLC for cash a couple of months ago. Can I legally "buy" the property from my LLC and get a purchase money loan to make the purchase?
In essence, I the individual, would write up an offer to my LLC to purchase property. I would take that offer to a bank and qualify for a mortgage loan within the banks criteria. I would close on the property and property would transfer from LLC to me, LLC would get paid off from the proceeds.
Is this a viable scenario or do the banks consider this to be self-dealing. Is this akin to a cash-out refinance?
If this is not viable, does anyone have any other suggestions for pulling out equity from a free and clear property in an LLC?
JS.
Unduly complicated and serves no purpose. Upon review the lender is going to realize that you and the LLC are essentially the same thing which makes this a refi not a sale. Simply approach the lender regarding terms for a refi.
Have you approached a commercial loan officer to discuss your needs?
Try the big lenders web sites. They will have REO sections. Most that I have looked at have data hopelessly out of date but you can give it a try.