Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
Has anyone been successful taking taking in their entity's name with a personal guarantee lately? If so, who was your lender and what were the EXACT STEPS you took to do it? I am mainly interested in whether or not people have been successful with this lately, but if you were able to do it in the past please share as well.
Has anyone been successful taking taking in their entity's name with a personal guarantee lately?
Inquiring minds want to know!
I've mentioned in a few posts that I've heard of people successfully taking title in their entity's name if they used the key words "estate planning purposes". However, this info is from a few years ago when lender's would have given your dog a loan and put him on title, so I would love to know if anybody has had any success doing so today.
the local bank i use has no problem with this..i take title in the name of my llc, but i have to personally guarantee everything...this is a commercial rate loan i should probably mention
20 year amortized loan, between 6-7% depending on amount of principal, 25% down, 5 year balloon. if it's a flip, my banker will also give me the first 6 months at 6-7% interest only...these loans obviously stay in house
The problem is that even if you get the loan in your name personally and deed it to a trust, LLC, trust with LLC as beneficiary, etc. it TECHNICALLY violates the due-on-sale clause and makes the loan callable. I don't trust lenders so I would like to be able to solve this problem from the start if possible.
Other people have mentioned doing this on threads, but they were short on details. If the tradeoff is higher loan constants from lower amortization periods or higher rates I don't think it is worth it for me. If someone is doing this will fully-amortized, 30-year debt at reasonable rates with no balloon that would be of the most interest to me. Some other suitable financing for property held long term is fine too.