All Forum Posts by: Juan Lopez
Juan Lopez has started 19 posts and replied 60 times.
Post: Applying as an individual and then transfering rights to an LLC
- Posts 61
- Votes 13
Originally posted by @Bill B.:
Wouldn’t you save time, money and hassle by simply getting an umbrella insurance policy? After all, you are 10x more likely to hurt/kill someone with your car than have a problem with your rental property. Without the umbrella you lose everything including what the llc holds. Especially since there are two of you. How would you feel losing the property because your partner killed someone with their car?
A $3 million policy for 12 rental properties, 2 cars, a pair of personal properties, a boat and a motorcycle was less than $1300 last year.
thanks Bill. I will also take a look into this and see if it really saves me time, money and hassle.
Post: Applying as an individual and then transfering rights to an LLC
- Posts 61
- Votes 13
Originally posted by @Wayne Brooks:
@Juan Lopez @Caroline Gerardo It’s not mortgage fraud at all....at worst it would be a breach of the loan agreement, and subject to being called due....which the solution would be to simply transfer it back.
However....Fannie Mae Specifically allows you to buy/mortgage in your personal name and then transfer title to a single member llc (or one you own the majority of)...Fannie has allowed this for over 5 years.
Thanks for the info Wayne. It is much appreciated. I will look into and inform my self to make an educated decision.
Post: Applying as an individual and then transfering rights to an LLC
- Posts 61
- Votes 13
Originally posted by @Josh Caldwell:
There is a good way to do what you propose that will give you asset protection and allow you to avoid the due on sale clause. When Congress set up the Garin St. Germain act they built in an exception to the due on sale clause for trusts. Putting a property into a trust does not trigger due on sale as it is not considered a transfer. The loan will stay in your name, as it should, but you will gain asset protection.
Thanks for the input Josh. Will take a look into this.
Post: Applying as an individual and then transfering rights to an LLC
- Posts 61
- Votes 13
Thanks for you input Caroline. All the information is much appreciated. I am no expert in the topic, but your comment comes at surprise to me, taken into account that one of the loan officers I work with mention this plan. Thanks again.
Post: Applying as an individual and then transfering rights to an LLC
- Posts 61
- Votes 13
Hello all:
I was hoping someone here could help me with a current situation. My partner and I want to buy rental properties (single houses) by applying as individuals to get better conditions on the loan (interest rates, closing costs, etc) but then want to do a quitclaim deed and transfer rights to an LLC to protect our total networth. I know banks could execute a due on sale clause but in reality that is not common, as long as I pay on time. My question is, I know that by transferring the right to an LLC we will be protecting our networth, however, the loan would still be under our names. Does this last mean anything at all? What other considerations should I look at? Is an LLC the best structure?
Thanks in advance.
I should be closing the purchase of my home residence by the end of July, and I wanna set up a security system. I would appreciate if you can tell me you experiences with this and what recommendations can you give me in general. Thanks in advance.
Hello All:
I am in the process of buying a single family to live in it and house hack it. I have looked so many houses and some are good options. Some are ready to move in and some require some rehab/remodeling. I currently own 5 units total, but i havent had to spend money on remodeling any of these units. Therefore, I dont know how much money it would require for me to remodel a house. I have no experience there. Where can i start looking and learning about this? Thanks in advance
@Germaine Valladares hey man, welcome to miami. I'm down for a networking event.
@Dave E. Thanks again man. Let's wait and see if anybody else can post their opinion.
@Dave E. Thanks for you reply. I totally forgot to mention I was planning on house hacking my house, and the numbers I have run indicate I would be living almost for free. Also, if I do use the funds for my primary residence, I believe the state taxes go down from 20% to 10%.