Single Purpose LLC: Everything You Need to Know

A single purpose LLC holds a title to real estate in which the lender who provided financing holds a mortgage but does not have any other liabilities or assets.3 min read

A single purpose LLC is a limited liability company that holds a title to real estate in which the lender who provided financing holds a mortgage but does not have any other liabilities or assets.

About the Single Purpose LLC

There are times when the lender requires a single-purpose entity (SPE) structure to insulate the collateral, which is the property with the mortgage. The structure protects the property from claims by creditors as well as restricting the business activities. This results in protection to the lender and the owners of the SPE from things like third-party claims attempting to target the property as a source of recovery to satisfy debts.

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