Wanting to quick claim out of an LLC and then obtain a 30 year fixed

[Mark Spidell]

Does anyone have any advice regarding the following scenario. I have a couple of single family rentals in the Dallas Metro area that are currently in an LLC. I bought out my partners at the end of 2014 and now want to obtain 30 year fixed rate loans for both properties. I do need to payoff a private lender, but the loan is not secured by either property.

I had heard from mortgage lenders that I must own the property in my name for 6 months before I can get a 30 year conventional loan.  

Any advice on the Texas quick claim process or any other thoughts on how to execute this plan.

Thank you in advance!

[Jon Holdman]

@Mark Spidell Texas handles this differently than Colorado.   Quit claim deeds are generally not recognized in Texas, while they can be used here in CO.  As other's have said, you should have a conversation with your accountant regarding tax consequences of these actions.  A title company in Texas should be able to advise you about the type of deed to use.  An attorney can if a title company can't or won't.

I believe the Fannie/Freddie guidelines (which you want to adhere to since you want a 30 year fixed loan) require ownership of the property to be in an individual's name for six months.  

You can then transfer it back to the LLC after the refi. However, that does violate the due on sale clause.

Really, this conversation is about asset protection.  Have you had a conversation with an attorney about asset protection?  You may be jumping through a lot of unnecessary hoops.