Albuquerque, NM · Member since 2017 · 1 post · 0 votes
I have been thinking about buying a new home and renting my existing home.
Then once the I have a renter and have purchased my new home, sell my rental home to my corporation at full value in order to get all of the equity available, not just what I could pull out of a refinance.
Real Estate Investor · Seattle, WA · Member since 2016 · 30 posts · 12 votes
9y
I haven't done this personally, but I recall discussion on one of the forums here in the past. I believe the challenge comes in if you still have a mortgage on your existing home. Most mortgage have a clause that requires payoff before transfer, even if its from you personally to your corp. You'd have to ask your lender, I suppose, or read the fine print on the note with a RE lawyer? You wouldn't want them to call the note just for something like that.
If you own your home free and clear, you can sell or transfer it to LLC. If you have a mortgage on it, you have to contact your bank to see if they will allow a transfer. As @Gallagher Wilson was referring too, bank have what's called Due On Sale close. Any time name on the title changes, this close gets triggered, and your mortgage is due in full in 90 days or so. Now, your real question is - how should I hold my assets to maximize my financing and limit my liability. If your property is owned by a company, you get commercial financing at higher interest rates. Your cheap money is 10 or so home owner loans you are eligible for. There is a lot of info on here about how to hold your property and how to limit your liabilities. Hope it helps. Good luck