Financing my Inheritance - Posted by Mike

Posted by jmac on December 01, 2007 at 15:29:16:

Yes, you can leave the loans in place and deed them over to a trust or LLC, but beware that the bank may call them due because of “due on sale” violation. It is unlikely they will catch it and it rarely happens for conventional lenders, as long as you keep making payments on time.

www.TheHardMoneyPros.com Hard Money Lenders in CA

Financing my Inheritance - Posted by Mike

Posted by Mike on November 30, 2007 at 14:28:03:

I’m not sure I will be able to provide enough information right now but want
to get a sense of what I face. Here is the Situation.

My Mother Passed away, and holds 3 Duplex Properties in FL. and her
personal house in NY.

My Brother Sister and I would like to keep all of them as rentals, and form a
corporation to hold them. (LLC probably).

The Loans for these properties will obviously have to change out of my
mothers names, We are concerned that lenders will not lend to us individually
for the amounts needed/ or to a new LLC.

Current Loans:

1k House (Plus 1K for Taxes). Monthly
2.2k Rental Duplex in FL (includs taxes) Monthly
2 Free and Clear Duplexes in FL.

Here are the Current Est. Values:
House 600k -700K just remodeled appraised at 600k before.
3 Rentals in FL all Identical right next to each other. 310K just appraised one
of them last month.

Rental Info:
Duplexes renting at around $1200 Per Unit.
Estimated Rental on House 4K-5K Monthly.

Any suggestions on how to Structure a Loan / Package loan that would allow
us to keep all the properties. My sisters has Bad Credit, Low income. My
brother and I are both 100k+ Income 650 or better credit scores. But we live
at our salaries. I.E. Debt to Income, is above 50% for both of us.

Anyway Lots of info, and I’m not sure if this is all premature just wanted to
see if anyone on here had any creative suggestions for convincing a leander
to fund these properties mainly as self sustaining.

Thank you in Advance.

Mike

Re: Financing my Inheritance - Posted by Kurt Schultz

Posted by Kurt Schultz on December 04, 2007 at 04:09:37:

I’m curious to know if there was any insurance monies that were supposed to pay off the mortgages if the Borrower died.

Maybe those places are paid for - or will be if you make a claim.

Re: Financing my Inheritance - Posted by Ben Carmona

Posted by Ben Carmona on December 01, 2007 at 22:55:06:

If you decide to refinance the loans out of your personal name be sure your mortgage professional understands the guidelines to do this. Each lender has unique guidelines specifically related to inherrited properties.

Ben Carmona

Re: Financing my Inheritance - Posted by Max

Posted by Max on November 30, 2007 at 18:34:38:

“The Loans for these properties will obviously have to change out of my mothers names” WHY?
Your mother will not protest. Just change title to LLC and make the payments. Just take them sub2