We are thinking that we should bid and buy houses that are government, HUD, and REO’s under our personal name and then transferring them to the Corp. because many of these entities are frowning on investment companies buying and rehabbing for a profit.
The question is: Can we transfer this quickly and easily without having to pay any extra taxes? or other costs?
My brother who is the investor in these deals feels this is alot of problem but the realtor (and us) believe it is going to be the key to getting good deals (if not getting them at all!)
Please give me your thoughts and ideas and how-to’s
always better to purchase in the entity. that way you never personally owned it.
why should HUD care. a buyer is a buyer.
Well you would think they wouldn’t care, but Fannie Mae gave us a 90 day window that we could not sell in (or at least couldn’t make more than a 10% profit)
And I know with another home we were looking at, HUD said that homeowners would take preference over investors…
Hi there,
I like the question you’ve posed! Just what would it take to transfer a property from a person to an entity? I have 2 out of state properties that I am currently renting out - but when I bought them I did it under my own name. How much $$ and time do you think it would take to transer this to the LLC?
I’m slowly learning but there is just so much to this business! Thanks for all the advise!
a deed requires nothing more than completing the form and filing at the courthouse. if there’s a mortgage, then it gets more complicated to avoid the DOSC.
I have a couple of rentals also and would like to put them in an LLC. How would one transfer a mortgage to the LLC? Thanks for any input.
deed the property. assign the mortgage. note that if the bank finds out, they may invoke the DOSC. or maybe not, as long as the loan is performing.
to avoid this, put the property in a trust, with LLC as beneficiary. this won’t trigger the DOSC, but is not quite as effective a liability protection strategy.
Is it possible to refinance a mortgage under an LLC EIN #? With a personal gar. is that like co-signing? The way I see it, if the mortgage is still showing up under personal credit are we still liable if we get sued?
My biggest concern with an LLC is if someone slips and falls on my property, are my personal assets safe? For that to happen don’t I just need to make sure my title is in the LLC and not the loan?
yes, you can refi to the LLC. a personal guarantee does not make you liable for events that happen on the property. Being the property manager, however, may expose you to liability, if you are negligent.