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Creative Real Estate Financing

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John K.
  • Investor
  • Madison, WI
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242
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30 year fixed, LLC's, taxes...

John K.
  • Investor
  • Madison, WI
Posted Feb 6 2015, 07:41

So I have a LLC that contains 3 properties, 5-year ARM mortgages on them.

I'd love to lock in low 4% 30 year fixed rate mortgages, talked with my banker and I would have to quick claim deed them to myself and partner, wait 4 months and then get freddie/fannie mortgages on them.  

I'd LOVE to lock in lower interest rates, but I love how clean having properties in a LLC is (myself and one partner).  All the rent checks get deposited into our business account, I use quickbooks to track them using classes, and at the end of the year we just file a simple biz return and each get a K-1 form.  Doing it non-llc seems like a mess to me from a operational administrative standpoint.  

So being creative - is there some way to get a mortgage & title in my name, but still have my LLC claim the interest instead, revenue and everything related to the asset?  Can we draft a document that for $1 our LLC leases all operational rights to our properties in our names?  Same for the interest?  Could we pay the mortgages personally, but then somehow as the business reimburse ourselves so it's more of a passthrough on us personally?  

I feel like a umbrella insurance policy for protections, is worth the potential $4000/year in interest savings over the next 30 years - I just don't want to create a opertional nightmare and spend it all on tax accountants each year trying to sort through it...

I've read other posts here on PB about a quick claim deed to the LLC for the property after the mortgage is in place, but that wouldn't solve the interest problem...

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