So the situation is that I am in a partnership with one other member, and we want to purchase a single family prop and deed it to the partnership. However, upon trying to gain financing, it appears that if we tried to buy under the name of the partnership, then it would be really high interest rates and always 20% down.
So my question is… if I bought it under my name and carried the loan personally, how would i be able to transfer the title to the partnership?
I have read that a warranty deed is what I would need to do. If this is so, how difficult is it to do this? How long does it take? All details regarding this process would be greatly appreciated.
If you buy the property in your name and sign personally, transferring ownership is as simple as drafting a new deed with you granting title to your partnership/entity. deal You will still, however, be personally responsible for the note which will be on public record for all to see.
So if your reason for wanting the partnership to have title is privacy, it wouldn’t take a rocket scientist to figure out what happened.
Just curious, but why aren’t you holding title in a trust? Much more privacy that way, although still not fool-proof.
You can use a quit claim deed or a warranty deed. As I understand it, Texas title companies don’t like quit claim deeds, so if you are in Texas, go with the warranty deed.
Thanks for the information. As for your comment on the trust, I can only say that I am still rather new to this, and chose a partnership since it would be easier for the both of us financially. Since you believe a trust may be better for me than a partnership, I would like to know what the advantages and disadvantages are to a trust, and why a partnership wouldn’t be as great an option.
Again I am very new to RE investments, and would appreciate any advice.
What ever type ownership you desire the deed is really easy to prepare. It is just a piece of paper or two that list the legal description of the property and has the buyer and seller name on it. You can buy a blank at the store and fill it in or pay an attorney 150 ±. You asked about time too. You can have it recorded at the courthouse where the property is located which takes a few weeks to get back the original. I have a blank deed typed on my computer too if you would like to get a copy of it to use. Hope i can help
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737