Deeding multi-family properties into an LLC after purchase
I am a newbie investor and this is my first post. I am a BP member and have been using various tools and information on this site for 3-4 months. I am frustrated trying to get properties to cash flow while using an LLC for protection.
In order to get a low interest rate (~3.0 - 3.5%), it seems I have to pay points (2-3), put 25% down, and purchase the properties in my name outside the LLC. I am being told that I can deed a property into the LLC once purchased but there is supposedly a clause that states the lender can call the note due if this is done. I am also being told that it does not ever happen but that this is the lenders right legally. I am also not sure if I would be able to deed many (say 5) duplexes into a Series LLC if I were to buy them from a single entity.
I live in a mid-size city in Texas where property taxes are high which does not help with my cash flow problems. I am en engineer so I tend to overthink & overanalyze everything I do. It would help tremendously if someone could validate what I am being told or straighten me out with a more accurate assessment of this particular situation.
With that being said, question #1 is should I just forget trying to bring the properties into the LLC? I have heard Brandon Turner state that they are not really necessary. But remember I am an engineer and engineers are not typically risk takers by nature; we like hard data.
Question #2 is to those of you experienced investors. Am I missing something really basic that will allow the properties in my area to cash flow well? Houses in my area are being snatched up immediately once listed on the MLS so somebody is making properties cash flow around me.
Ok, I know this is a very long first post but I am excited to get started and frustrated that I can't get my investment business off the ground. Any help you real estate gurus can provide would be greatly appreciated.
Rob the engineer...:)