All Forum Posts by: Gregg Orenstein

Devin, Thanks for the response. This makes strategic sense from tax & liability perspective, and removes complications. There's still the APR delta between long-term business/personal REI loans which I'll try to ballpark this week.

Jeremy, how long did you wait after getting the loan before transferring title to the LLC? Just seeing if the smart move is establishing a track record of payments first.

Thanks again,

Gregg

Thanks Jeremy!  Appreciate the insight.

All,

I'm a new investor who has decided on an area and has a good team in place. My initial investment will be a buy-and-hold SFH for long-term rental. I wish to be legally shielded from day of purchase, but in order to do so also means that the property should LLC-owned. The LLC already exists and is incorporated in the state where I'll be purchasing my first investment property.

Every book or podcast has a loan strategy, but they never discuss the pros and cons (or even the feasibility) of applying that strategy when the property is to be purchased through an LLC. Or whether purchasing a property through an LLC is a smart, or dumb move.

Consequently the available information is less than robust, and for every piece of "sage wisdom" I find, there is another which contradicts it.

So, I'm writing here in the hopes that others can share their personal experiences threading this very particular needle.  Assuming that the loan I'm after is as close to a conventional mortgage as possible, responses to the following will be extremely helpful.

1) Is there a common-place strategy which is preferred by most investors looking for a mortgage loan, whose ultimate goal is LLC ownership of a
property?

2) Did you take out a loan/mortgage under your name, and then move the property to the LLC? How long did you have to wait until you could affect the change of ownership?

3)During the time the rental property was under your own name, did you take any measures to protect yourself and your assets from lawsuits?  What form did this protection take?

4) Was your title insurance cancelled when the property changed hands?  If so, was it difficult to have the new title insured?

5) Given your experience, would you say that obtaining a mortgage in your name, and subsequently transferring ownership to the LLC is a better or worse choice than obtaining the loan for the property through the LLC?

Apologies for the long post, but I'm honestly very thankful for your responses.

Take care,

Gregg