All Forum Posts by: John G.

@Addam Driver That's a TRE-MENDOUS help. Thank you so much. I will ask my current lender if this is an option. Otherwise, I will contact BB&T!

@Melvin List This is my understanding. Has your bank triggered the due-on-sale clause from investors as they try deeding to their LLC after obtaining conventional financing?

Yeah, no. I'm not looking for validation to "just go ahead and do it" @Paul Bowers. I'm looking for advice based on people's experience. What other's have done/currently do. Posted here because of the "legal issues" part. Thought I'd get different sets of eyes here.

Hi all,

Posted this in the conventional lending forum but thought it be appropriate here as well. I'm purchasing my first property (Milwaukee) and asked my mortgage broker (Chemical Bank) about transferring the deed after the loan is secured. He said I can't do that. And that I'll need commercial lending. Is this something he HAS to say because I emailed him? And I can likely do it and he'll turn the other cheek? Or should I not have asked that?

What do I do???

It's a $90 investment. Putting 20% down.

Thanks!

@David Dachtera This frightens me because I may be inheriting a significant amount of $ at some point in the near future. Now I'm afraid that may be at risk. 

@Nicole A. Yup. PM will be in place at closing.

Ok, seems my options are 1) Form an LLC and see commercial financing with a higher rate. And if the number's don't work, move on (as per @Paul Bowers . 2) Residential financing with adequate insurance. 

This however is a turn-key property, I probably won't be finding killer deals that way, so option 1 isn't looking good.

Perhaps I'll check a couple of other lenders to see if they're warm to the idea of quit claiming a deed from a residential mortgage into an LLC...

@Nicole A. Commercial rates are about 2 - 2.5% higher.

@Brie Schmidt I will look into that.

I'm still confused about the route to take. All I've been reading about is LLCs, LLCs. Put in $Xxx amount of value in each LLC. Have each property in it's own LLC, then all of those LLCs owned by one main LLC...

I guess an umbrella insurance policy is enough because, well, it's a small house and I actually don't have many assets anyway that someone could go after other than this house (I rent my primary residence and lease a car)?

What about the whole "Quit claim to LLC" and no one cares? And that this is what most investors do. I've been hearing this on podcasts, BP, everywhere it seems.

@Brie Schmidt Hmmm. Then how do most investors structure this legally in to LLCs (seem most do)?

Thought maybe it was a "don't ask, don't tell thing"

Hi all, I'm purchasing my first property (Milwaukee) and asked my mortgage broker (Chemical Bank) about transferring the deed after the loan is secured. He said I can't do that. And that I'll need commercial lending. Is this something he HAS to say because I emailed him? And I can likely do it and he'll turn the other cheek? Or should I not have asked that? What do I do??? It's a $90 investment. Putting 20% down. Thanks!