Investor · Apex, NC · Member since 2014 · 43 posts · 3 votes
Hello all, I'm an investor in the RDU market in North Carolina. My partner and I are in the process of getting permanent debt on a blanket of duplexes we currently own under an owner finance deal.
We are in the contract under our respective entities names at this point but are contemplating whether or not it's beneficial/safe or whether it even matters whether we keep it that way or form a joint entity (LLC) once the loan is in place. Any suggestions, comments, advice are welcomed.
Thank you in advance
I'm no expert in this, but from what I've read on these forums, you should probably form the LLC you want to hold the loan and property BEFORE you finalize the loan. There is a chance that changing the owner of a property (from personal names or business names to an LLC) can result in the bank calling the loan due in whole. Some people say the chance is remote, but others say it has happened to them personally. Still, the most prudent move seems to be form the joint LLC first, get the loan in the name of the joint LLC, and have the property owned by the joint LLC.
Hopefully, someone with more experience in LLCs will chime in with their knowledge.
Investor and Architect · Ramsey, NJ · Member since 2010 · 305 posts · 84 votes
11y
sounds to me like you should form an llc entity for just these properties. I think many others have done it this way for a long time. Talk w your atty and accountant.
Investor · Apex, NC · Member since 2014 · 43 posts · 3 votes
11y
thank you guys and @Randy E. I should've worded that different I meant to say once we are approved for the loan not after the loan is in place.
@Larry K. yes sir will do, some accountants are out of the loop when it comes to this so I wanted to seek an investors point of view as I have an accountant but he deals with my personal returns and affairs!