All Forum Posts by: Chau Nhan

Go personal name and get proper insurance. Really the benefit of LLC right now is anonymity (tenants can't look your name up online).

4-units and under are considered residential and HAVE to close in your name for government loan (Fannie/Freddie). LLC would need other financing with worse terms.

You can transfer the property after sale, but there is a "due-on-sale" clause that states your loan is due in-full if you ever transfer title. 95%+ of the time lenders won't care if you keep paying the mortgage though.

Ask yourself what protection the LLC is giving you. There are 2 types of "Attacks" on your property:

1. Inside attacks (from the property-- like tenants slipping and falling); cover these with a property insurance policy

2. Outside attacks (from your personal self-- like you causing a car accident and them coming for your assets); protect these with other insurance and a personal umbrella policy

So to add on to my original reply. If you buy a property in your name and want to put it in an LLC I think you are going to have to weigh the pros and cons. I have one property in my name and one in an LLC. There is definitely more work added on when you have a property in an LLC. For example getting an ein and opening a bank account, doing taxes and putting public utilities in the property name. As well as trying to figure out whether some of those things need to be put in the LLC's name.

That being said if you are putting the property into an LLC for liability reasons then you have to ask yourself if putting it in an LLC is worth the time and effort versus just getting umbrella insurance.

The property that is in my name I was going to transfer it into an LLC but changed my mind. I just remember my lawyer saying that it can sometimes be an issue with the lender. Apparently they don't like people doing that. It worked out for me, had I done it I wouldn't have been able to get a heloc on my house.