All Forum Posts by: Chad Bourque

 No, I am asking if this is a "conventional" loan or not, meaning is this loan being qualified using your personal income? 

What type of loan is this? 

So, my final post on the LLC quit claim deed info. I read what @Sarah Kensinger said and I can't argue about the rules change.

I decided I would call 8 lenders here in my town. A couple of nationwide banks, local credit unions, a nationwide mortgage company and one portfolio lender.

Each and every one of them said they wouldn't allow the transfer without triggering the due on sale clause. I didn't spend any time getting clarification on their rules, just the basic info on their policy.

One lender did tell me that your lender, @Chad Bourque, might allow it because you are personally guaranteeing the mortgage. I am not sure how it works but there it is. 

Hi @Chad Bourque thought I would real quick help to clear up some of your questions!

First off you don't need an LLC in FL for asset protection. They're pretty much the only state that offers anonymity asset protection with a land trust, so that saves the step and cost of setting up a holding LLC in WY, DE, or NV. You do need good insurance (check out Proper Insurance) because if something were to happen and IF you had your assets protected correctly, all a person could do is walk away with insurance money. But if your wide open with all your assets in plain sight easily accessible, whoever is suing could and probably would push for more money.  

Your lender is 100% correct about the quit claim deed, the rules changed in 2016 and if you as the owner/payee of the condo are the main person in the trust/LLC it is totally legal and fine to quit claim the loan into the trust. Here is a video from one of our business advisors explaining that and showing the loan docs to back it up....Due on sale clause

If your serious about setting up your assets so your protected correctly I would suggest checking out Anderson Advisors. This is a subject they are passionate about and want to make sure their clients are informed and also legally set up right. If you plan on purchasing more STR properties their membership is well worth the cost!

Congrats on the hopeful purchase of a condo! We nearly bought a condo is Miramar Beach earlier this year and yes, we had planned on setting up a land trust and then quit claiming the deed into the trust. What complex is your condo in?

I hope that helps and of course you can always dig around...Anderson Advisor's YouTube channel has tons of videos....and find more info that can help you make an informed decision!

Hey @Chad Bourque, I feel that they aren't being 100% accurate on that. You can do it the quit claim to the LLC, but like @Sunny Alexander said, it will most likely trigger the due on sale clause. That will require you to refinance the loan to a commercial product. Usually including a higher interest rate and more down.

I wouldn't expect any lender allowing a transfer of the asset without the loan would leave them hanging out in the wind.

Now, I don't think there is a real reason to do an LLC in this instance. What you are talking about is a series LLC. A parent LLC holding multiple secondary LLC's is a good idea if you have a bunch of properties.

Just get good STR policy and an umbrella that protects you in case of a problem.

Quit-claim deed may trigger a due-on-sale clause, I would ask your lender.  Congrats!

 Transfer of the loan or asset?

You should speak with a local lawyer specializing in this to get the correct answers.

I and others have mortgage a home and then deed it to an LLC. You must ensure your mortgage lender permits this and that you follow all agreement rules and local laws.