Hello, I am getting ready to put in an offer for a retail property. I have pre-approval letters under my personal name. I also have an LLC. How do I make an offer?
What does your attorney recommend?
I would do it on your personal name, that is what the pre approval was for and I would guarantee you will have to take the title in your name since that is what the mortgage will be in.
Was your plan to transfer it to your LLC? If so there are several fantastic threads on BP about "due on sale" problems with transferring the title. I would definitely read up on that.
The other option you would have is to find a bank that will give you a commercial loan, you can then put in your LLC's name right out of the gate, the downside is that usually the terms on a commercial loan include a higher rate, a shorter amortization period and usually a balloon payment.
Since this is outside my state (Illinois) I would also consult a real estate attorney to make sure you are 100% on the laws and regulations of Kansas.
Chances are your lender is going to ask you to get an addendum putting your personal name as the buyer anyways, unless you've got preapproval specifically with your LLC on it (that would likely be considered a commercial loan, and most of us don't do those unless it's hard-money or coming from an actual commercial lender with you giving a PG anyways).
You can always do a transfer to the LLC after closing, but there are risks involved and you should educate yourself before doing that - and when I say educate yourself I mean go and learn about the logistics and the risks, and while you can learn that stuff here on BP, your specific situation is going to dictate what direction you go. The folks that are qualified to give you specific advice about your specific situation are asset protection or real estate attorneys. The advice can be costly, but making the wrong move can devastate your financial life.
As smart as we all try to sounds, nobody should ever give or take legal advice online.
Thanks for the replies. I'm second-guessing establishing an LLC. Oh well. I guess you learn with experience.
When you first start out they are going to ask you to be the personal guarantor typically.
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