Posted by phil fernandez on April 02, 2002 at 10:13:24:
When I go to the bank to put financing on a property, the banks have had no problem with the deed being in the name of one of my LLC’s. However the bank still has me sign personally for the loan. I have no problem with personally signing as I intend to pay on my obligations.
Transferring Property into LLC - Posted by Chris (NC)
Posted by Chris (NC) on April 02, 2002 at 08:46:09:
I am a Newbie investor. I have been studying REI for about four years now and figured it is time to go for it. I have filed with the state (NC) to form an LLC. From my understanding, you can buy a property in my name, then use a quit claim deed form to transfer it into the LLC’s name. I was told by a banker yesterday that once you use the quit claim deed form, it triggers the loan to become current. Is this true? How can I transfer property into an LLC? How hard is it to buy property (buy and hold)through an LLC? Any help would be greatly appreciated. Thanks
Re: Transferring Property into LLC - Posted by DavidV
Posted by DavidV on April 03, 2002 at 24:08:54:
i assume you meant trigger the due on sale clause when you said “trigger the loan current”. Put the property into a land trust, then either list your LLC as the beneficiary or list yourself as beneficiary and assign that interest to your LLC. The bank will know the property is in trust but won’t have a clue who owns the beneficial interest. The only thing recorded (in most states, but not all) is the deed to the trust.
Re: Transferring Property into LLC - Posted by Mark
Posted by Mark on April 02, 2002 at 09:50:24:
I also had a recent inquiry about this subject. I was informed that a quick claim will not trigger a loan to come current, unless you are habitually delinquent with the mortage payments. I did hear it is more difficult to buy prop under an LLC because the bank is giving you a mortage in a entity. What if the entity cannot make the payment—the bank will loose their money. No real person is borrowing money.
This is the info I have so far—any corrections or comments are welcome from others…
Mark