Financing with LLC – Page 3 – Piggington's Econo-Almanac

This topic has 55 replies, 6 voices, and was last updated 15 years, 7 months ago by Kingside.

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February 7, 2009 at 6:06 AM #342974

4plexowner
Participant

I purchased as individual and then transferred property into LLC

There might be language in the mortgage that lets the bank foreclose over a title transfer but how likely is it?

LLCs are commonly used to hold real estate and as long as the mortgage is being paid the bank isn’t going to say anything

of course, if you are setting up the LLC with fraudulent intent, and that can be proved, the LLC would be invalid and easily penetrated – ie, not worth the paper it was printed on

February 7, 2009 at 9:15 AM #342484

Kingside
Participant

Sometimes a rental liability policy can give you more cost efficient and effective asset protection than forming an entity. There is a lot of misinformation on asset protection issues out there. The answer to these types of questions depend on one’s personal situation and preferences towards risk. The questions should be directed to a qualified advisor who knows one’s personal sitution. Asset protection issues are best considered as an adjunct, not a substitute for a larger financial and tax plan.

February 7, 2009 at 9:15 AM #342808

Kingside
Participant

Sometimes a rental liability policy can give you more cost efficient and effective asset protection than forming an entity. There is a lot of misinformation on asset protection issues out there. The answer to these types of questions depend on one’s personal situation and preferences towards risk. The questions should be directed to a qualified advisor who knows one’s personal sitution. Asset protection issues are best considered as an adjunct, not a substitute for a larger financial and tax plan.

February 7, 2009 at 9:15 AM #343041

Kingside
Participant

Sometimes a rental liability policy can give you more cost efficient and effective asset protection than forming an entity. There is a lot of misinformation on asset protection issues out there. The answer to these types of questions depend on one’s personal situation and preferences towards risk. The questions should be directed to a qualified advisor who knows one’s personal sitution. Asset protection issues are best considered as an adjunct, not a substitute for a larger financial and tax plan.

February 7, 2009 at 9:15 AM #342916

Kingside
Participant

Sometimes a rental liability policy can give you more cost efficient and effective asset protection than forming an entity. There is a lot of misinformation on asset protection issues out there. The answer to these types of questions depend on one’s personal situation and preferences towards risk. The questions should be directed to a qualified advisor who knows one’s personal sitution. Asset protection issues are best considered as an adjunct, not a substitute for a larger financial and tax plan.

February 7, 2009 at 9:15 AM #342943

Kingside
Participant

Sometimes a rental liability policy can give you more cost efficient and effective asset protection than forming an entity. There is a lot of misinformation on asset protection issues out there. The answer to these types of questions depend on one’s personal situation and preferences towards risk. The questions should be directed to a qualified advisor who knows one’s personal sitution. Asset protection issues are best considered as an adjunct, not a substitute for a larger financial and tax plan.

February 7, 2009 at 2:15 PM #342569

Anonymous
Guest

[quote=4plexowner]I purchased as individual and then transferred property into LLC

There might be language in the mortgage that lets the bank foreclose over a title transfer but how likely is it?
[/quote]

Thanks. I’ve heard a few examples of folks just recording the transfer without bothering to tell the lender. The lender still has their deed so it seems to me they wouldn’t care much. There does seem to be some risk of creating an administrative hassle if they do act upon it.

And yes, the LLC is for legitimate purposes. I’m not really the crafty type.

Do you know if your mortgage had a “due on sale” clause when you transferred?

February 7, 2009 at 2:15 PM #343128

Anonymous
Guest

[quote=4plexowner]I purchased as individual and then transferred property into LLC

There might be language in the mortgage that lets the bank foreclose over a title transfer but how likely is it?
[/quote]

Thanks. I’ve heard a few examples of folks just recording the transfer without bothering to tell the lender. The lender still has their deed so it seems to me they wouldn’t care much. There does seem to be some risk of creating an administrative hassle if they do act upon it.

And yes, the LLC is for legitimate purposes. I’m not really the crafty type.

Do you know if your mortgage had a “due on sale” clause when you transferred?

February 7, 2009 at 2:15 PM #343029

Anonymous
Guest

[quote=4plexowner]I purchased as individual and then transferred property into LLC

There might be language in the mortgage that lets the bank foreclose over a title transfer but how likely is it?
[/quote]

Thanks. I’ve heard a few examples of folks just recording the transfer without bothering to tell the lender. The lender still has their deed so it seems to me they wouldn’t care much. There does seem to be some risk of creating an administrative hassle if they do act upon it.

And yes, the LLC is for legitimate purposes. I’m not really the crafty type.

Do you know if your mortgage had a “due on sale” clause when you transferred?

February 7, 2009 at 2:15 PM #343002

Anonymous
Guest

[quote=4plexowner]I purchased as individual and then transferred property into LLC

There might be language in the mortgage that lets the bank foreclose over a title transfer but how likely is it?
[/quote]

Thanks. I’ve heard a few examples of folks just recording the transfer without bothering to tell the lender. The lender still has their deed so it seems to me they wouldn’t care much. There does seem to be some risk of creating an administrative hassle if they do act upon it.

And yes, the LLC is for legitimate purposes. I’m not really the crafty type.

Do you know if your mortgage had a “due on sale” clause when you transferred?

February 7, 2009 at 2:15 PM #342893

Anonymous
Guest

[quote=4plexowner]I purchased as individual and then transferred property into LLC

There might be language in the mortgage that lets the bank foreclose over a title transfer but how likely is it?
[/quote]

Thanks. I’ve heard a few examples of folks just recording the transfer without bothering to tell the lender. The lender still has their deed so it seems to me they wouldn’t care much. There does seem to be some risk of creating an administrative hassle if they do act upon it.

And yes, the LLC is for legitimate purposes. I’m not really the crafty type.

Do you know if your mortgage had a “due on sale” clause when you transferred?

February 7, 2009 at 2:25 PM #342903

Anonymous
Guest

[quote=Kingside] […] The questions should be directed to a qualified advisor […][/quote]

Agree…that’s why I ask them on Piggington!

😉

February 7, 2009 at 2:25 PM #343012

Anonymous
Guest

[quote=Kingside] […] The questions should be directed to a qualified advisor […][/quote]

Agree…that’s why I ask them on Piggington!

😉

February 7, 2009 at 2:25 PM #343039

Anonymous
Guest

[quote=Kingside] […] The questions should be directed to a qualified advisor […][/quote]

Agree…that’s why I ask them on Piggington!

😉

February 7, 2009 at 2:25 PM #342579

Anonymous
Guest

[quote=Kingside] […] The questions should be directed to a qualified advisor […][/quote]

Agree…that’s why I ask them on Piggington!

😉
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