I’m new to this forum and to real estate investing in general. I have recenly started to invest in properties along with to other business partners. Over the first 6 months of out venture we were able to purchase 3 single family properties all in the same town. One of the homes is being leased while the other two are still being shown. The problem, however, has to do with ownership. When we set out, our intention has always been to put our investments under our business names. Therefore, we recently formed an LLC, but the properties were purchased prior to the LLC. being formed, therefore, each property is titled under one of our names. I also understand that by doing that, we also received a lower mortgage rate, as well as lower home owner’s insurace quote. However, it appers that the risk of having the titles under our names may be far greater. What can be done in this situation? Could we run into problems with our lenders being that we applied under owner occupy vs. investment property? Any legal ramifications? Anyone have a similar problem? As much info I can get on this would be greatly appreciated.
I am in the same predicament! I purchased a home prior to the creation of my business, so I have been reading up on the subject, and as far as I can tell, you can go to the lender and request to have the house transferred from your personal name to your business name. It is legal, but it is up to the lender whether or not they will oblige. It can be done, but I am not sure how transfer of ownership will affect the mortgage rate or insurance quote.
Thank you for your repsonse. I will read more up on it as well. Let me know if you learn anything new and I will do the same.
Put it into a land trust and transfer at will with no DOSC violation.
So this would be a seperate type of business entity? In other words can I maintain the LLC. and put the properties under the Land Trust or must the two be totaly separate entities? Thanks
You place the property in a land trust then take your beneficiary interest in the name of your LLC for maximum protection.