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Updated almost 10 years ago,
Personal financing for loans but LLC handles the business
We are preparing to close on our second investment property (SFR) in the next month. Like the first, in order to secure financing with a competitive interest rate and 20% down, we put the loans in the names of the LLC partners. Putting it in the name of the LLC was not feasible.
The LLC receives all the tenant checks, pays all the expenses including the mortgage, has separate savings and checking accounts etc. Other than the mortgage, there really isn't much in the names of the partners.
Is this an acceptable way to do things? Any issues with it?
Part of me is tempted to try to transfer the title and mortgage to the LLC but I know I risk triggering the Due on Sale clause. It could make things more simple (if no issues with the clause) and keep us from running into the issue with number of property loans per person I've read about.
Thoughts?
Thanks for your time.