I have many clients that wait to do this when refinancing, so it may be easier. However, you aren't gaining the benefits of the LLC until done. I don't know the paces of doing so, but I assume a quit claim/transfer of title to the LLC is the order?If possible it's simpler to buy in the LLC's name, that's how we have always done it.
[ Edited by norrist on Date 12/27/2003 ][ Edited by norrist on Date 12/27/2003 ]
When purchasing property it can be extremely difficult to buy property in the name of an LLC, unless you are paying cash. Let me rephrase that, if you are using a mortgage or a bank of somekind in the transaction, they will 95% of the time not let you purchase in the name of the LLC. If you are using other investors' money in the form of cash then you could buy in the name of the LLC.
Changing ownership @ the time of refinance will NOT work either.
The most effective way would be to quit-claim deed the property into the LLC and risk the due on sale clause. I have done this before with success, and have never heard a word from the DOS clause.
Also, you can transfer the interest into a trust, which is personally my new method of holding property.
We tend to use a lot of "local" banks and as long as they have the Operating Agreement and related info on the LLC they don't have a problem. We have used 3 different banks in the last month on 3 different properties and not a problem for any. I'll bet you are right for the larger lenders, though. If it's not "cookie-cutter" they'll probably give you fits...
None of my friends have been able to puchase a property through financing.
What is an DOS Clause? And why have you chosen to us Trusts instead?
Quote:
On 2003-12-27 08:28, TANISGroupLLC wrote:
When purchasing property it can be extremely difficult to buy property in the name of an LLC, unless you are paying cash. Let me rephrase that, if you are using a mortgage or a bank of somekind in the transaction, they will 95% of the time not let you purchase in the name of the LLC. If you are using other investors' money in the form of cash then you could buy in the name of the LLC.
Changing ownership @ the time of refinance will NOT work either.
The most effective way would be to quit-claim deed the property into the LLC and risk the due on sale clause. I have done this before with success, and have never heard a word from the DOS clause.
Also, you can transfer the interest into a trust, which is personally my new method of holding property.
I have many clients that wait to do this when refinancing, so it may be easier. However, you aren't gaining the benefits of the LLC until done. I don't know the paces of doing so, but I assume a quit claim/transfer of title to the LLC is the order?If possible it's simpler to buy in the LLC's name, that's how we have always done it.
[ Edited by norrist on Date 12/27/2003 ][ Edited by norrist on Date 12/27/2003 ]
When purchasing property it can be extremely difficult to buy property in the name of an LLC, unless you are paying cash. Let me rephrase that, if you are using a mortgage or a bank of somekind in the transaction, they will 95% of the time not let you purchase in the name of the LLC. If you are using other investors' money in the form of cash then you could buy in the name of the LLC.
Changing ownership @ the time of refinance will NOT work either.
The most effective way would be to quit-claim deed the property into the LLC and risk the due on sale clause. I have done this before with success, and have never heard a word from the DOS clause.
Also, you can transfer the interest into a trust, which is personally my new method of holding property.
We tend to use a lot of "local" banks and as long as they have the Operating Agreement and related info on the LLC they don't have a problem. We have used 3 different banks in the last month on 3 different properties and not a problem for any. I'll bet you are right for the larger lenders, though. If it's not "cookie-cutter" they'll probably give you fits...
None of my friends have been able to puchase a property through financing.
What is an DOS Clause? And why have you chosen to us Trusts instead?
Quote:
On 2003-12-27 08:28, TANISGroupLLC wrote:
When purchasing property it can be extremely difficult to buy property in the name of an LLC, unless you are paying cash. Let me rephrase that, if you are using a mortgage or a bank of somekind in the transaction, they will 95% of the time not let you purchase in the name of the LLC. If you are using other investors' money in the form of cash then you could buy in the name of the LLC.
Changing ownership @ the time of refinance will NOT work either.
The most effective way would be to quit-claim deed the property into the LLC and risk the due on sale clause. I have done this before with success, and have never heard a word from the DOS clause.
Also, you can transfer the interest into a trust, which is personally my new method of holding property.
We purchased our building through the LLC. We had no problems with it, but the bank did want a personal guarantee for the loan.
I have done quite a few deals under a LLC. Larger banks just want to make sure that you have at least 20% to put down...