All Forum Posts by: Bhaskar Pandey

Thank you all for your replies. I feel like the best way is to call my lenders and ask directly. As for the LLC, it would be two partner/owners and I would feel safer if the homes were moved over to it.

I will post my findings here once I have called the lenders ( in about a month as I’m in the middle of a move).

Cheers.

Thanks for the replies, guys. What would you recommend doing instead? I’m new to RE investing and want to safeguard myself while being as efficient as possible. 

I own two SF rentals in San Antonio, Texas and before I buy a third one, as per the popular suggestion, I wanted to move both homes in to an LLC for asset protection and minimizing personal liability. However, as I started researching the process, I came across the terms 'due-on-sale' in this blog post (https://www.legalzoom.com/articles/how-do-i-transfer-title-of-a-property-from-a-person-to-an-llc) which I understood as the remainder of loan would be due in full if I attempted to transfer the deed over to the LLC. What I've read so far is that not many (or none of the) lenders would be willing to let me transfer the deed over to the LLC without calling it due. I'd like to hear from you successful RE investors who have been able to do this and find out what my options are?

So far, I've come up with the following as my options:

1. Continue to keep the properties in my name and get a large umbrella policy (dwelling policy) to cover any liability that I may be subjected to.

2. Refinance as a commercial loan (higher interest rate, larger payments, points etc.) - more expensive overall.

3. Land Trust with myself as trustee and LLC as beneficiary (http://clintcoonsblog.com/2011/01/26/transferring-real-estate-into-your-llc/).

Can anyone having done this before provide their experience?

Thanks!

Mitch, I have two rentals being managed by a property manager whose sage advice was to not let any tenant stay longer than 3-4 years for this very reason. Market rents have climbed and a sudden, significant increase would be a huge shock. Also that avoids having the tenant getting too attached to the property. 

But the earlier the better. Gives both parties a chance to plan their next move.

Thanks Andrew. A couple of loan officers have reached out to me via private messaging basically saying the same thing. 75% of ARV on a home worth $160K at most with about $80K owed still. After closing costs and fees, what would you recoken my net cash out would be?

I’m planning on using that on my next project (a remodel) and would like to budget realistically.

Hi BP members, I'm a new investor. Have two SF rentals one of which I have house-hacked and converted to a sole rental now. I'd like to do a cash-out refinance on one of the homes. Is this a possibility in San Antonio, Texas? From talking to someone who also is fairly new in this field, I found that all major banks he went to told him they didn't offer Cash-out refinances on rental property.

Does RBFCU offer CORE-Fi on investment properties?

I'd like to think there has to be at least one bank that does. I mean, that's the whole principle behind the BRRRR strategy isn't it? Any suggestions welcome. Anyone have any experiences they can share? Thanks.