All Forum Posts by: Jean H.

@Karina Gomes To answer your second question about putting your property in an LLC, if you choose to refinance the property with a Fannie Mae or Freddie Mac lender, you can close in your name and then move the property to an LLC without triggering the due-on-sale clause. These only apply to Fannie Mae loans issue after 2016 so I don't know if you can rely on it for your current loan with BoA.

Here’s the relevant section from Fannie Mae.

Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage Loans

D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014)

[…]

D1-4.1-02, Allowable Exemptions Due to the Type of Transfer

Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:

A transfer of the property … to …

a limited liability company (LLC), provided that

the mortgage loan was purchased or scuritized [sp] by Fannie Mae on or after June 1, 2016, and

the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

@Zion Bar Are you looking for condos, Single Family, Multifamily? Buy and hold, flip? There’s lot of places in Miami that don’t have HOAs or COAs that you can buy with a $100,000 down payment.

For example, I bought a duplex in Little Havana for $475,000 (20% down = $95,000) and there’s lots of places in Little Havana that are cheaper. No HOAs.

Hialeah, Design District, Little Haiti, Allapattah.

Heck, I am closing on Monday on a SFH (no HOA) in Hollywood for $153,000. Yes, it's Broward, but still less than an hour from Midtown. You have lots of options.

@Matt Nico @Noel Lopez PM me and I can send you his information.

@Joshua Herald what about an FHA loan with a 203(k) option (where they give you money for the rehab as well)?

@Kris Mann I asked my lender. Unfortunately, he only lends in Florida. Sorry.

@Arta Montero 1First Bank. DM me if you want my mortgage banker’s contact info.

@Robert Ortiz As others have pointed out, once you use an LLC, you have to get a commercial loan. Where I disagree is the assertion that commercial loans are all ARMs. I just closed Friday on a 30-year fixed loan at 3.625% (no points) under my LLC. Non-ARM commercial loans are out there. You just have to keep calling banks (preferably local ones) until you find one that does fixed mortgages under an LLC. Happy hunting!

@Arta Montero Hey Arta, no points. But one reason I may have gotten such a good rate is that we were refinancing the loan that we originally had with the same lender so they had a history of me paying on time and such. That’s just a theory though.

I just closed today on a cash out refinance of an STR BRRRR property at 3.625% for a 30-year fixed mortgage under an LLC. If it was an initial purchase or not under my LLC, I could have probably knocked a few more percentage points off of that, so yeah, 5% is pretty high. Go call some of the smaller banks and see what they can offer.

@Jean H. So I just realized a reverse 1031 is something different, but the action steps are still sound. I’d ask your tax and legal professionals what this is called and whether that would save you the capital gains taxes. Maybe it would be the tax-saving loophole you are looking for.