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Updated over 7 years ago on . Most recent reply
Is the LLC path common?
I like the liability protection an LLC provides, but everything I read says that banks won't lend to LLC's (or allow to deed to an LLC normally). So do most of y'all not go the LLC route? I am assuming then you would just get insurance?
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As a couple of others have stated, don't use Quit Claim Deeds in Texas. When you sell, the title companies will require a Warranty Deed to be executed so you might as well execute one to begin with. Banks do loan to LLCs. They may require the individual member(s) to sign a personal guaranty for the loan. Don't borrow money in your personal name with the intention of immediately deeding to an entity. Your lender may consider this fraud- read your loan agreement. It happens, and the lender likely wont accelerate but going into the loan with the intention of transferring title is not a great idea.