Quitclaim to LLC and its issues

[Raza Rizvi]

Hello everyone,
I am planning to buy a couple of properties in AZ. Currently I own 2 properties in Manhattan - I live in one and rent the other. My questions are:
* Should I form a LLC for the new investments. The mortgage company I am working with said to do the following:
I will guarantee the loan in my name and then the title company can vest the property in the LLC after closing. Does this make sense?
* The other option is to quitclaim the mortgage to the LLC but I believe the mortgage company can call out my loan. That makes me nervous
* Does anyone know of banks that finance under LLC's with reasonable interest rates if I personally guarantee the loan?

Any feedback is appreciated.
Thanks

[Andy B.]

Originally posted by Mitch Kronowit:

I still don't know why 99% of everybody out there says to use a Quit Claim Deed. I was told to use a Grant or Warranty Deed for all transfers to our entities. Why drive on 3 wheels when you can drive on 4?

I agree - don't do a quit claim. A warranty deed and a quit claim take the same amount of time to prepare and the warranty deed does not come with title issues that could hold up a future sale.