New investor...Help needed regarding FHA 90 day flip rule

[Dhru Das]

Hello

I am a new investor from Chicago. Recently I have purchased my first fix n flip property. I have put the title in my wife's name when the property was purchased. Now I am trying to form a LLC as everyone says LLC is the way to go to protect my personal assets from any trouble in future. I came to know that if I transfer the title to my LLC now it will cause FHA buyers to be not able to purchase my property for at least 90 days.

I have couple of questions:

1)When that 90 day FHA rule starts? is it from the date when the property was purchased or the date when the title is transferred to the LLC...

2)Is there any other ways to protect my personal assets without forming a LLC so I don't lose FHA buyers for my first project? I will of course put future properties in my LLC to begin with.

Sorry for the newbie questions..Thanks in advance!!

Dhru

[Wayne Brooks]

A transfer of title to the LLC will trigger a new 90 day clock. The "have to put in an LLC" is a bit over blown. Just have good insurance, and do things properly. Your potential liability is less with a vacant house than with a rental anyway.