SC Lender for LLC

If you are seeking rehab financing then sure, but if you are seeking conventional financing it's my suggestion to consider shelfing the LLC for the purposes of financing (you can always quit claim it back into the LLC once you are done)---LLC financing for investors is very limited...

Regards,

Scott Miller

Edited: 06/26/2010 at 04:07AM

Ben Carmona

· Wentzville/St. Louis, Missouri

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Icon_minipost Oct 17 '07, 11:23 AM

You may also be able to work with a select few commercial lenders that loan on residential properties. About 75% may be your max for that.

Please explain your thoughts behing requiring a llc lender.

Would having the property loan in your personal name and title in the business name be ok?

Edited: 06/26/2010 at 04:07AM

Scott Miller

Real Estate Lender

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Icon_minipost Oct 18 '07, 06:54 PM

Other then building business credit, what benefit would the OP derive from this approach---it's much easier to quit claim it in and out, and you perserve the intent of the LLC (asset protection, etc.)...

Regards,

Scott Miller

Originally posted by "Investment Loans"

Would having the property loan in your personal name and title in the business name be ok?

Edited: 06/26/2010 at 04:08AM

C. S.

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Icon_minipost Oct 18 '07, 11:52 PM

I know that rules differ by state and county, but what I'm being told about refinancing a property in MD and transferring it into the members' name is that if I don't dissolve my LLC, I will have to pay state and county transfer taxes and state recordation taxes on the assessed value, and recordation and county transfer taxes on the refinanced amount. But maybe I misunderstood.

I would consider quit claiming it out and back in , but it seems like I would have to pay excessive taxes both times. For SC I know that the taxes would be minimal because the property didn't cost much. Both properties are owned by the MD LLC, which registered as a foreign entity in SC.

I feel like when I finish these two rehabs I'll be qualified to write a book about what not to do when investing in real estate. I already have a title - " Don't Try This at Home" .

Edited: 06/26/2010 at 04:08AM

Ben Carmona

· Wentzville/St. Louis, Missouri

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Icon_minipost Oct 20 '07, 10:15 AM

Originally posted by "EZLoanz"

Other then building business credit, what benefit would the OP derive from this approach---it's much easier to quit claim it in and out, and you perserve the intent of the LLC (asset protection, etc.)...

Regards,

Scott Miller

Originally posted by "Investment Loans"

Would having the property loan in your personal name and title in the business name be ok?

Hey Scott,

You may have mistunderstood the statement. Please read again.

Having in the personal name would not build business creidt.

As you can see, your copy of my quote discusses doing the loan in the personal name with title in the business name. There are a few wholesale lenders that will do the loan in the personal name with title vested in the llc.

Doing this requires no quit claim back and forth business to personal.

I'm all for doing that when required and have had much success with the lenders I use.

Since were on the subject of quit claims let's discuss continuity of title for readers.

As indicated above, it's been my experience that lenders will allow borrowers to refinance properties recently quit claimed from a business entity to themselves. However, if there are multiple owners within the llc the lender usually requires that all of them be on the new loan application. So if there are 4 bororwers within a llc, 2 of them are quit claimed over personally, and then later try to refinance this could throw up red flags in underwriting.

Edited: 06/26/2010 at 04:08AM

Account Closed

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Icon_minipost Oct 20 '07, 07:32 PM

Ben,

Thanks for the details on continuity of title.

John Corey

Edited: 06/26/2010 at 04:08AM