Posted by Garrett Sutton on March 03, 2004 at 21:01:54:
The key is whether you have personally guaranteed the loan or not. In 99 percent of the cases you will have. From there, you need to locate a lender that will lend to you no matter how many properties you are obligated on. They are out there. Good luck, Garrett
Quit claim deed from individual to trust - Posted by Craig
Posted by Craig on March 03, 2004 at 12:06:15:
If I quit claim a property from my name to a trust, and make the beneficiary of the trust my LLC, how does this impact my ability to purchase additional properties under my personal name? In other words, when the deed is held in the trust’s name, will this property still show up on my credit report, and thereby preclude me from being able to purchase additional properties?
Re: Quit claim deed from individual to trust - Posted by Alexander Manuel
Posted by Alexander Manuel on March 04, 2004 at 24:39:24:
I’ve been planning as Craig has to quit claim my properties to LT’s and then assigning the beneficial interest to an LLC, however I have a few additional concerns that no one has so far been able to clear up. 1) What happens to the Title Insurance if I quit claim to a Trust? If a defect should arise down the road…would I still have Title Insurance coverage? The policy is currently in my name personally, not 123 Main Street Trust. I can see an insurance company using that as a weazle clause to escape liability. I read somewhere that the property should be deeded to the trust (not quitclaimed) to preserve the title insurance- but don’t know if this is true. Another concern I have is 2) Does the hazard, flood and windstorm insurance increase if it’s in the name of a trust? An investor in S. Florida told me that I would need to get a much more expensive policy than the one I currently have if it is held in a trust or corporation. The final concern I have is that most of my properties are rented via Section 8. I don’t know about the experience you’ve had with your local Section 8 office, but the staff of the ones here in S. Florida are not exactly the sharpest tools in the shed. I have a hard time as it is proving I’m the owner of recently acquired property that hasn’t made their tax rolls, imagine factoring in the concept of beneficial interest or explaining the mechanics of a land trust to a caseworker. I fear that they will want the trustee to sign off on everything, meaning that whoever I name as trustee will have to deal with this burden on a recurring basis each time Section 8 needs a signature.
If anyone has insight on these issues I would really be grateful since I have been putting of my asset protection strategy as a result of these lingering doubts.
Kindest Regards,
Alexander Manuel