STR Loan with 10% down and transfer title to LLC

[Corrie Winter]

Hi All! My husband and I are looking at investing in a first STR property in the US, looking in AZ, TX and FL at the moment. We are definitely wishing to ultimately hold this property (and future properties) in separate LLCs to protect other assets from liability. We have some experience managing STRs because we had an STR in Ecuador that had previously been our primary residence, but this was sold this year. In other words, STR management is familiar to us, but financing options in the US are not.

Do any of you that have STRs hold them in LLCs? Is it possible to get a 10% down loan for a 'vacation property' and then transfer title to an LLC?

Thanks in advance!

[Mark Miles]

Originally posted by @Corrie Winter:

Hi All! My husband and I are looking at investing in a first STR property in the US, looking in AZ, TX and FL at the moment. We are definitely wishing to ultimately hold this property (and future properties) in separate LLCs to protect other assets from liability. We have some experience managing STRs because we had an STR in Ecuador that had previously been our primary residence, but this was sold this year. In other words, STR management is familiar to us, but financing options in the US are not.

Do any of you that have STRs hold them in LLCs? Is it possible to get a 10% down loan for a 'vacation property' and then transfer title to an LLC?

Thanks in advance!

 Yep I’ve done it. My attorney who specializes in corporate structuring advised me to do the following, so this is what I did:

Email 5 or 10 local lenders asking if you can do this. Some of them will tell you absolutely not, some of them will tell you it is not a problem. Go with one who tells you it is not a problem. Make sure to get this in writing and save it. That is why I said to use email.

The bank could try to take future action against you, but any good attorney can fight back by showing them the email in which they permitted you to do this. Not 100% foolproof but it’s your best backstop.

Like I said, I’ve done it