Posted by Ben Carmona on October 23, 2007 at 19:43:34:
It’s not illegal to transfer title. However, it can trigger the due on sales clause. This is very debatable and you should always speak to a cpa or attorney about that.
Many investors do transer though. Be sure your working with a mortgage professional that understands how to get the refi done. Also, if more than one person is within the llc they all need to go on the loan.
Buying a sub $100,000 property to rehab and rent. Want to purchase under an LLC, willing to do 25% down. Looking for a 30 yr fixed, or a 15 yr. Bank states the underwriters no longer allow residential properties to be bought under an llc. They recommend buying it under my personal name, then quick deeding to llc…
Since when did that change? Is that what you folks are doing now?!
They said that the only way to purchase property under an llc is through the commercial department. Thats a 5 year loan/20 yr amort. Thats what I do for my office building, not a dinky $100,000 property. The fees would kill me.
I have talked to several banks (M&I, Wells Fargo, etc), all are now saying the same thing.
If I buy the property under my personal name, and the transfer to an LLC…does that still afford to me the protection of the llc? Or can I be sued personally as the mortgage holder???
Re: 30 year loan under an llc? - Posted by Ben Carmona
Posted by Ben Carmona on October 23, 2007 at 12:37:59:
There’s 3 different topics to be considered.
Purchasing a residential investment property in your personal name and having title in your pesonal name.
Purchasing a residential investment property in your personal name and having title in the llc name.
Purchasing a residential investment property in your llc name and having title in the llc name.
The first option is how standard conventional loans are made. There are a few of these lenders that will financing in your personal name and llc so you dont have to quit claim over. So that also address option 2.
The 3rd option is using a commercial lender that will do both loan and title in your llc. There are a few national lenders that will do this up to about 75%. Your local banks will do these as well.