Own 3 houses cash, need to pull $$$, worth 60k - Posted by Tracey King

Posted by Tracey King on May 10, 2007 at 19:28:09:

The problem with that is that it will forever show up on my personal credit report instead of the business. It will forever show I personally owned the house, which negates the anonymity of having an entity and there will be personal liability during the time that it’s in my name…let’s say 30 days or so (the length of time it takes for a deed to show up on title…lenders are wanting me to be the owner of record BEFORE I apply for the loan)…in which time someone could die and I would be sued personally. If you’ve ever been sued for anything you know that’s the last thing you want to ever want to have happen to you and you get really aggressive about protecting your name and your stuff. Because in the long run, it doesn’t matter if you’re totally innocent, you will spend 10k fighting it. I don’t think you need to ask me how I know that. And if you are sued personally and some liberal judge in kalazoo finds for their side, you have a PERSONAL judgment that attaches to everything you own and they can garnish your wages if they want. It is NEVER a good idea to have a rented property in your name for 2 seconds. Now, vacant is another story.

Been a real estate flipper for 6 years and only recently decided to start hanging on to a few. I’ve seen a lot of bad things happen to my hold 'em buddies and I’m determined to not have them happen to me. Bankruptcy doesn’t look like any fun.

Own 3 houses cash, need to pull $$$, worth 60k - Posted by Tracey King

Posted by Tracey King on May 08, 2007 at 19:22:04:

Hey guys,

I bought 3 REOs in OH with cash (total $30k) and then rehabbed a couple of them (total 20k), got one rented, other out for rent and need to finish the last. I need to refi each of them to pull my cash out so I can finish the last one and do it some more.

Problem 1: title held in my llc. My husband and I are 50/50 owners and I found a mortgage broker at americorp.com that said as long as we are the sole owners of the llc, that we don’t have to put it into our names. I don’t want to hold title for even one second in my own name.

Problem 2: the houses are worth about 60k each fixed up, maybe as high as 70 on one of them. Depreciation has wiped out a lot of the value in OH. The mortgage broker is telling me that the lender’s bottom limit for that type of loan is 75k. Of course he didn’t know that until he started marketing and looking for specific programs…urg.

I started talking to him about a blanket loan for all 3 but those have limits too and I’m not sure I want to do that…might want to sell one of them.

So, question is…Am I going about this the right way? I’m in AZ so I’m relying on internet lenders. The local lenders I contacted were giving me the “you have to have it in your name” speech.
What’s the best way to finance these low cost houses that have great cash flow ($500 to 650 mo)if the lender won’t loan less than 75k to an llc per house?

Re: Own 3 houses cash, need to pull $$$, worth 60k - Posted by Jr

Posted by Jr on May 12, 2007 at 13:53:57:

Maybe you could approach a lender about a Home Equity loan or a Home Equity Line of Credit. As you bought the houses all cash, you have plenty of equity. I have heard that Bank of America offers such loans to investors or maybe you could contact a local bank in Ohio.

Re: Own 3 houses cash, need to pull $$$, worth 60k - Posted by DJ-nyc

Posted by DJ-nyc on May 10, 2007 at 16:33:29:

You may have to deed to name, refinance and deed back to LLC. what is wrong with that?

my 78 cents.