All Forum Posts by: Chris Lucas

Hi, everyone!

I just got my LLC set up and would like to start using a bank account / credit card owned by the LLC to pay for the expenses (mortgage, repairs, etc.) on properties currently in my name. My thought is to build some credit within the LLC so financing through the LLC may be easier with the next purchase.

My eventual goal is to get every rental property into the LLC (when I have the capital to pay out any "due on sale" I may run into), but, until then, building credit where and when I can seems to be a good approach.

Anything I need to do procedurally to do this legally? Any experience with this approach out there? Any downfalls, things to watch out for, etc.?

Thanks!

Chris Lucas

Hi everyone!

I currently have three duplexes under contract in Ashtabula, OH. Does anyone have recommendations on solid Property Management companies who cover this area?

Any help you could provide would be appreciated!

Thanks!

Chris Lucas

@Natalie Schanne Thanks for the advice! I had a nice phone chat with @Upen Patel who gave me a great lay of the land including the pros/cons of the LLC when it comes to lending.

@Jeff Dulla I do notice that. I have been looking into, and likely will, purchase umbrella insurance.

I did talk with a lender who said I could title the property as my LLC, but keep the loan in my name. Of course, I am going to get this in writing but am wondering if there are any issues with this going forward - from the title/title insurance perspective, financing perspective, etc.

I do have another post to pose this question, so if anyone has insight into this, please post on this thread or on here!

Ori,

Thanks! I feel good that at least the first response is "absolutely not!"

It does not seem they are giving me commercial rates on it (got quoted 4.625% for a 20-year; 5.25% for a 15-year). Bank is local (NE OH, NW PA) so perhaps that helps a bit.

I will be talking with my realtor, the lender, and my attorney today about this setup, and will post on here for others' reference when we come to a conclusion.

Chris

Hello!

I have seen some posts around this topic, but nothing that definitively answers my questions.

I just talked with a lender that will provide a loan in my name, even if the title for the property holds the name of my (to be created) LLC. I will, of course, get this in writing and run it by my attorney, but always good to have more advice than less!

My questions:

• Has anyone heard of, and/or had success with, this approach before?
• Does the title company / title insurance company typically care that the loan is in my name as opposed to the LLC?
• Are there other problems, either up-front or down-the-road, that this approach may cause? For instance, if they sell this loan to Freddie/Fannie, could I expect some issues?

Thanks!

Chris

Hi, everyone!

First post alert!

I am looking to do my first two deals simultaneously (one 4-plex, one duplex, same town) and would like some advice on a few items. Ultimately, I will be talking with a CPA to discuss strategy but just wanted some general feel on my path forward before I get consulted.

• My wife and I are preapproved for the amount of both properties, but I am thinking about starting an LLC, or some legal entity, to shield my home/W2 income/savings/etc. Is it simple enough to buy the property under my name and then transfer the property to a legal entity like an LLC?
• Speaking of LLC, it seems that the biggest issue with forming an LLC is the up-front work to do so and the separation of the financials? Am I missing a big downside here? My wife and I make good money and have significant (for the average 30-something) assets, so I am thinking this is a no-brainer, but perhaps I am missing something?
• And, I am going to plead ignorance on this one, but if I do create an LLC, does the financing of future deals rely on the credit of the LLC, or of the owner(s)?

Really appreciate the help! I have been a big fan of the podcast, the books, and the forums for a long time and finally decided to take the plunge.

Thanks!

Chris Lucas