Title to LLC - Risks & Rewards
I’m looking to buy my first multi-family either duplex or fourplex. I found a lender who upfront wants to provide me a conventional loan and has no issue if I transfer the title to my LLC after closing.
My goal is monthly cash flow so the conventional loan makes the most sense. BUT, there are potential risks if I deed the property to my LLC.
-First off I’m not worried about the bank triggering the due on sale or acceleration clause because my lender has already given me the thumbs up.
-Q1: Sounds like I loose title insurance if I transfer title to my LLC. Is there something I can do to protect myself further?
-Q2: My long term goal is to refi down the road to pull equity out. I can deed the property back to myself but may have big tax implications. Are there ways to defend against this?
-Q3: What else do I need to consider?