Does transferring the deed over to your LLC provide any asset protection while your personal name will still be on the mortgage? As many of you already know, lenders don't like lending to entities as much. I thought a good work around would be to purchase cash, refi under my own name after rehab and rent, and then quid claim transfer the deed to my LLC. Any insight?
Well, it is a quit claim deed, for starters. Next, you will get best rates on the agency loans, backed by Fannie Mae or Freddie Mac, and you can transfer them into an LLC. It used to be that lenders could call these due, based upon change of title, but not so at this time. From there, portfolio lenders or commercial lenders are commonly used for mortgages to the entity. In any event, you will likely personally guarantee loans until your business has enough credit, cash flow and experience to do otherwise.