Posted by dewCO on October 27, 2000 at 20:11:55:
Martin, Try some of the creative techniques discussed here and you won’t need to show positive income to qualify for anything.
Getting financing after protecting assets? - Posted by Martin
Posted by Martin on October 27, 2000 at 12:18:46:
I’ve read a lot of posts about putting properties into land trusts or LLC’s for protecting your assets. After doing this has anyone had any problems with lenders. If your rental property is no longer in your name can you still use the positive cash flow to qualify for loans like you did before forming corps, LLCs etc. I really want to protect myself from any posible lawsuits but I want to be able to continue to get financing. Please any input would be appreciated on this subject.
Thanks
Martin
Re: Getting financing after protecting assets? - Posted by David
Posted by David on October 27, 2000 at 13:17:32:
The proper way to handle this is to show all the LLC income/expenses/assets/liabilities exactly as it is - as a separate company.
for your personal balance sheet, you should show an interest in the LLC.
The question is if your LLC or you are going to borrow the money - few lenders will write a mortgage on a residential property held by an LLC. and those that do will charge more for it.
Note that if you don’t operate and display your LLC as a separate entity from yourself, you will have no liability protection, as the law will consider you and your LLC to be the same.
Re: Getting financing after protecting assets? - Posted by Martin
Posted by Martin on October 27, 2000 at 14:41:48:
The reason I was thinking of an LLC was for the pass thru taxation onto my schedule E for a single member LLC. I’ve read some of Bill Bronchick articles about LLC’s and didnt see anything about this removing the asset protection. If this is the case should I use something else for protection or just stick with an embrella policy? How do others set themselves up for protection but still use their cash flow for loans?
Martin