All Forum Posts by: Curtis Few

Looking forward to it!

Looks like I am a little late to the party, just moved to Delaware a few months ago and got connected with some investors in the Newark(where I live)/Elkton who have been met up a few times now. Has anyone gotten a chance to do the same?

Did anyone get together in Dover? Some investors in Newark and Elkton have been getting together over the past few months and one time we met in Middletown which would be splitting the difference for any Dover folk if anyone is interested.

Hey Mario, just to preface I have not done this myself, however I am not terrible at research and I was able to find some stuff. 1) I think that you can transfer after you purchase but incur some taxes and other fees which I talk a little bit about below so if you can find a loaner that works with an LLC I would set it up beforehand so you don't pay a bunch of fees twice. 2) the basis of an LLC is to limit what is liable in the case of a lawsuit. From my basic understanding of the law it appears that if you hold properties in the same LLC then they could potentially still be drawn into the same lawsuit if that happens. I have heard of people putting a limit of what they will hold in a single LLC like 250K in total property value but that is basically one house around this area, so I think it depends on the benefit vs the cost of setting up new ones.

since the LLC is also a separate entity I believe that if you just transfer it you may be liable for taxes for the gain of the home and possibly transfer taxes.

in the end I think you are right, whoever you have the mortgage with could determine whether or not they will allow it. I have read that Freddie Mac and other entities that market primarily to first time home buyers don't like this, however I am unsure if they can stop a transfer(unless they have a due on transfer clause or something where they can call the loan due).

All in all, I think that a visit to your local attorney could really help navigate this since a lot of the "ifs" and "ors" are woven into LLC law, tax law and your loan paperwork.

plus, from my understanding some more local banks or credit unions have less strict requirements and may loan to an LLC if you can form a relationship with them.

wish I could give you a step by step, but I hope that the info at least helps to answer a little even though it probably brings up more questions.

Hi everyone! I am pretty new to the area and I live in Newark. I have a head knowledge of real estate investing concepts and some specifics, but haven't acted as I was nervous doing it with my previous job. I'm sending out connects to those in the thread to make some friends with like-minded people and make those next steps.