Updated 3 months ago on . Most recent reply
Seeking Advice: Changing Title for Private Loan
Hello,
I am a rookie investor with 1 rental property new to BiggerPockets. My property has a traditional mortgage currently, but I am taking out a private interest-only loan soon that improves my cash flow significantly. I am seeking advice for how to best pay off the current mortgage and clear title of that mortgage lien, create the deed of trust, add the private loan secured to the title, etc. Should I use a title/escrow company to complete the whole process or can I do some of this myself to save money?
Additionally, I think I should move the property from my personal name into an LLC - wondering when to complete this step of the process? I worry about tax implications and a due on sale triggering from current mortgage vendor.
Any advice is greatly appreciated!
-Bill
Most Popular Reply
#2 Creative Real Estate Financing Contributor
- Lender
- Charleston, SC
- 936
- Votes |
- 1,113
- Posts
#2 Creative Real Estate Financing Contributor
- Lender
- Charleston, SC
Your new lender will do all of this. They will order and review title, provide the loan documents and instructions to title/closing attorney, and work with title to order the payoff of the existing loan from the current lender. Title and/or the new lender will also obtain the lien release/satisfaction of mortgage. If you want to move the title to an entity, now is the time to do it. Whether or not this is beneficial is another question.
If this is some kind of handshake/friends and family loan, have an attorney do all of this for them. Do not DIY this.
- Patrick Roberts
