Loans & LLC's

[Dustin Morgan]

I'm assuming banks do not lend to LLC's, so how do investors that hold their properties in a LLC's finance them through banks?

[Jim Farrell]

@Peter Grosso , my obligation on the financing obviously doesn't go away when title is transferred, I'm personally on the hook and intend to make my payments timely. The loan contract remains between me (personally) and the lender. What I've done, however, is reduced substantially the ability of knuckleheads to sue me personally through the LLC.

@Dustin Morgan , I look at this similarly to an investor buying a property "subject to" existing financing, I.e, assuming debt. In that situation, the loan documents usually permit the lender to "call" the loan. But why would they unless the new owner isn't making payments?

Same situation with me. While my loan docs may address how title is to be held, the lender will be perfectly happy as long as I make my payments on time. 

By the way, I had an attorney prepare the quitclaim and to his credit, he did bring up the requisite point about title.