Posted by John Merchant on October 31, 2009 at 24:26:39:
Mtg cos haven’t been exercising their DOS (due on sale)clauses for some years now, and with the jillions of foreclosures and resulting REOs, aren’t likely to begin now.
So keep the title in your name until the loan is made and the mtg is in place…then deed it to your LLC.
As Bill bronchik’s famous article says, there’s “No due on sale jail”.
Tranfer Real Estate Title to LLC? - Posted by Doug Cornell
Posted by Doug Cornell on October 05, 2009 at 12:53:13:
Hello,
I have been flipping a house for the last few months and am about ready to put it up for sale. I formed an LLC awhile back but when I closed on this house the mortgage company told me they couldn’t title it in my LLC… not sure the reasoning I never did get a clear answer out of them.
My question is, is there a way for me to transfer the title into my LLC before I sell the property? (Quit Claim?) Is it worth even doing it i.e. are there any advantages for taxes? I’m pretty sure profit from the LLC passes through to the owner’s as income so I don’t think it would make a difference for taxes, but I am not sure. Thank you in advance!
Doug C.
Omaha, NE