I know a lot about how we should keep rental propeties in LLC. I have LLC open for this for last two years. I purchased five good cash flow propeties but was never able to pruchase on LLC names due to following:
Lenders are willing to lend on entity or its really high interest rate so there will be no cash flow.
Insurance companies require comercial policy to cover entity owned properties.
DOSC prevented me so far transfer these 5 rentals on my llc name.
Here is how I protect myself so far:
high liability coverage to cover all of these propeties
umbrell policy to cover extra
Now my questions are these:
What is the best way to tranfer these on LLC name?
How can I go around, if at possible, on DOSC?
Is having a good libility policy enough for now like 1mill for these rentals or I need more.
Your current protection is fine unless you have several million in equity or have significant assets outside of real estate. Only a qualified professional who examines your entire operation and status can determine what is sufficient and appropriate for you.
you need a better lender. with a personal guarantee a lender who is familiar with what you are doing will have no problem lending to the LLC.
Banks are not in the money lending business. They are in the money making business.
Thus, they only want to deal with the 99% of “traditional” mortgages where they can standardize their policies and “fill in the blanks” on the forms so that they can all tell their corporate bosses that they “have done their jobs” and put how many closed loans they did on their annual review.
Banks are like McDonalds: they standardize everything so that they are operating at maximum efficiency to drive costs down and profits up. But you are NEVER going to get a tasty burger from McD.
To make a loan to an LLC you need to get away from “banks.”