Updated about 8 years ago on . Most recent reply
Quit Claim Deed after obtaining a mortgage
The Podcast always says to take action, so that's what I've been doing! However, I have run up against a problem that I need a bit of guidance as it relates to banking.
The strategy I've heard discussed on the Podcast that I'm trying to implement: purchasing a duplex in your personal name and getting a residential loan in your personal name as well; then once financed, doing a quit claim deed to place the property in an LLC for asset protection and/or you have partners in the deal.
My question relates to the how the bank is going to handle this in 1 year from now when I'm trying to do this strategy again, but they'll notice the income isn't being presented on Schedule E page 1 on my tax return, and instead is coming through on my Schedule K-1 from the LLC. Will that cause any problems with the bankers? Or did I go wrong in the fact that if it is a true multi-member LLC/partnership, then this strategy may not work.
Thanks in advance for your help and discussion.