All Forum Posts by: Matthew McNeil
Matthew McNeil has started 31 posts and replied 686 times.
Post: Starting An Anonymous Trust to Form An LLC

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Google "Wyoming Asset Protection Trust"
Post: Real Estate Investing for Expats

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Anne Villanueva:
@Matthew McNeil Hello, yes im an OFW. I am very much eager to start real estate investing and buy property here in dubai for rental since I work here or in the Philippines but I don't know how to start. Last year I bought a pre-selling condo and I am planning to flip/sell it in two years or three. And now, my target is to find a property that would create cashflow for me.
Try this link; https://www.biggerpockets.com/...
Post: Real Estate Investing for Expats

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Anne Villanueva:
Hi. I am an expat working in Dubai, I am eager to start and currently learning and learning more about real estate investing to be financially independent in the future.
Is it possible for an expat to start investing in real estate and buy properties in their home country while working abroad? Which strategy to use and which type of properties to buy? What are your advices and suggestions?
Thanks! 🙂
Are you a Filipina OFW living in Dubai inquiring about investing in the Philippines (you wrote "home country")?
Post: Buying under an LLC or Personal

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Tom S.:
Originally posted by @Matthew McNeil:
Originally posted by @Steven Destine:
I founded an LLC a few months ago because I wanted to turn my investing into a real business instead of a side hobby. My tenants now submit their monthly rent into my business account but lenders are not allowing me to use those funds to purchase more properties. The main issue seems to be because I don't have 2+ years of business tax returns. Does anyone have further insight on this and ways to get around this? Do you just buy properties using funds from a personal account?
There's not much you can do if your LLC is only a "few months" old as you wrote because 1) you haven't filed a tax return for the business and 2) you probably haven't paid yourself a "Distribution." Once your business is more established - time wise - then you can take the Distribution as a payment into your personal account, which the lender will see on your personal tax return as reported on a K1.
Correct me if I'm wrong but thought if you're the sole owner of the LLC that has a rental business, for tax return purposes the LLC is ignored and you file on Sch E of your return? There is no "business tax return"
The OP didn't clarify if he's the sole owner of the LLC. My mistake in assuming if he is. Most posts on BP regarding LLCs are referring to two members and I replied based on that assumption. A two-member LLC may choose to file as a partnership using a Form 1065. A single member LLC is considered as a Disregarded Entity in the eyes of the IRS.
Post: Buying under an LLC or Personal

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Steven Destine:
Hey @Cameron Tope, when you say your properties are in your LLC, does that mean the LLC is the Owner of the property but your name is under the mortgage?
When you QC a property into a LLC the mortgage stays with the original borrower. It does not transfer. If you borrowed $100,000 from xyz lender to buy a property then transfer the property to the LLC the loan stays with you personally.
Post: Buying under an LLC or Personal

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Mike Lattier:
I'm interested in this topic as well. I hear pundits all over the place (including here) saying that you must "have" an LLC, including for STRs, but then the guys at BP say that no bank will lend to an LLC for first time investors AND transfering to an individually owned property to an LLC violates the due on sale clause. I would love someone to explain the apparent contradiction. And, by the way, I'm an atty. so I have some knowledge of the liability issues here.
BP members are evenly split 50-50 regarding the "Due on Sale" clause issue and most of the feedback you're going to get is opinion. He's my opinion regarding this issue, as I've written on other posts;
The lender can exercise the "due on sale" clause if the name(s) of the buyer are not the same name(s) as the members identified as the owners of the LLC. For clarity; as with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the SAME individuals in an official capacity (e.g. Joe and Jane Smith as trustees of Smith Trust). Typically, the same applies to LLCs where you and your spouse are sole members (single or multiple member LLC).
If you take out a mortgage personally and transfer the property to your LLC that you control, you should be exempt. Also, if your loan was conventional; Fannie Mae recognizes the legitimacy of a QC between the mortgage holders and the LLC so long as the LLC is controlled by the borrowers;
If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six-month ownership requirement. (In order to close the refinance transaction, ownership must be transferred out of the LLC and into the name of the individual borrower(s). See for additional details.)
I believe Freddie Mac follows suit. Here’s a BP post on the same topic; https://www.biggerpockets.com/forums/49/topics/610831-oh-yeah-the-due-on-sale-clause-is-now-llc-friendly-sometimes
Regardless, you should always talk to your lender and tell them exactly what you’re planning and get their approval.
Next is to check with the Title Company regarding the Title insurance. Generally, the coverage of the policy will state; “The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.” Again, as with the question regarding the lender mentioned above, its best to ask your Title company if the insurance coverage remains intact if the asset is transferred.
Unlike you, I am not an attorney, but this is what my attorney advised who specializes in real estate law.
Post: Buying under an LLC or Personal

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Steven Destine:
I founded an LLC a few months ago because I wanted to turn my investing into a real business instead of a side hobby. My tenants now submit their monthly rent into my business account but lenders are not allowing me to use those funds to purchase more properties. The main issue seems to be because I don't have 2+ years of business tax returns. Does anyone have further insight on this and ways to get around this? Do you just buy properties using funds from a personal account?
There's not much you can do if your LLC is only a "few months" old as you wrote because 1) you haven't filed a tax return for the business and 2) you probably haven't paid yourself a "Distribution." Once your business is more established - time wise - then you can take the Distribution as a payment into your personal account, which the lender will see on your personal tax return as reported on a K1.
Post: What is one thing you wish you knew when you started in RE?

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Kathy Calderini:
Please share the one thing you that you wish you knew when you got started in Real Estate investing.
One thing I wish I knew when I started? Well, I knew nothing about REI when I started. I guess I wish I knew more about leverage back then.
Post: Tell me about a time when your LLC saved you...

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Matt K.:
Originally posted by @Matthew McNeil:
Originally posted by @Matt K.:
I've never understood the people that fear getting sued to the extent of needing LLC but completely ignore or could care less about the potential of triggering due on sale clause when transferring personal loans to an LLC.
Not to mention the fact that this action itself sets you up for failure from the start as there's no good reason one buys on personal name to start with.... While the intention was always to be an LLC.
The lender can exercise the "due on sale" clause if the name(s) of the buyer are not the same name(s) as the members identified as the owners of the LLC. For clarity; as with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the SAME individuals in an official capacity (e.g. Joe and Jane Smith as trustees of Smith Trust). Typically, the same applies to LLCs where you and your spouse are sole members (single or multiple member LLC).
If you take out a mortgage personally and transfer the property to your LLC that you control, you should be exempt. Also, if your loan was conventional; Fannie Mae recognizes the legitimacy of a QC between the mortgage holders and the LLC so long as the LLC is controlled by the borrowers;
If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six-month ownership requirement. (In order to close the refinance transaction, ownership must be transferred out of the LLC and into the name of the individual borrower(s). See for additional details.)
However, the more important question might be regarding the Title insurance. Generally, the coverage of the policy will state; “The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.” Again, as with the question regarding the lender mentioned above, its best to ask your Title company if the insurance coverage remains intact if the asset is transferred.
Nice info, but isn't the point of the llc generally speaking to reduce risk? Wouldn't you be increasing the risk by the transfer (even though extremely unlikely)? Plus buying in own name wouldn't that create an issue with separation, how would you explain why you didn't just buy in LLC name from the start ?
How would that increase the risk? I think you're equating "risk" to the possibility of the lender calling the note if they see a transfer. However, as I wrote above, the control of the asset remains with you if the members of the LLC are the same as the members on the note.
Regarding buying the asset in the name of the LLC. Some investors do, but many don't and they just transfer it to the LLC after buying it. It's also important to note that Quitclaiming an asset to an LLC doesn't transfer the mortgage. That stays with you. The loan is still in your name.
Post: Tell me about a time when your LLC saved you...

- Rental Property Investor
- Boise/Portland
- Posts 709
- Votes 742
Originally posted by @Matt K.:
I've never understood the people that fear getting sued to the extent of needing LLC but completely ignore or could care less about the potential of triggering due on sale clause when transferring personal loans to an LLC.
Not to mention the fact that this action itself sets you up for failure from the start as there's no good reason one buys on personal name to start with.... While the intention was always to be an LLC.
The lender can exercise the "due on sale" clause if the name(s) of the buyer are not the same name(s) as the members identified as the owners of the LLC. For clarity; as with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the SAME individuals in an official capacity (e.g. Joe and Jane Smith as trustees of Smith Trust). Typically, the same applies to LLCs where you and your spouse are sole members (single or multiple member LLC).
If you take out a mortgage personally and transfer the property to your LLC that you control, you should be exempt. Also, if your loan was conventional; Fannie Mae recognizes the legitimacy of a QC between the mortgage holders and the LLC so long as the LLC is controlled by the borrowers;
If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six-month ownership requirement. (In order to close the refinance transaction, ownership must be transferred out of the LLC and into the name of the individual borrower(s). See for additional details.)
However, the more important question might be regarding the Title insurance. Generally, the coverage of the policy will state; “The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.” Again, as with the question regarding the lender mentioned above, its best to ask your Title company if the insurance coverage remains intact if the asset is transferred.