All Forum Posts by: Account Closed

Hello everyone,

Looking for some guidance from experienced minds here before I make a mistake. I would very much appreciate any help with this decision. 

I'll (try to) keep it short. There is a property that my grandmother purchased for me a few years ago. I would have bought it myself but there was no way a bank would lend to a 20 year old with no credit and little income. So, the mortgage and the deed are both in her name, I am not in any paperwork. It is time to change that so I can begin reporting the rental income directly in my name. I will be adding my name or an LLC to the deed so I can legally be considered the "landlord" and collect the rent in my name.

The bank that holds the mortgage has OK'd the quitclaim as long as her name also remains on the deed. I also already have an LLC set up. But here are my questions..

When it comes time to buy another property, how will the bank view the rental income if it is under the LLC vs under my name? How will it view the LLC having the asset/equity vs me having it?

In other words, will one option make it easier on me next time I stroll into the bank looking for a mortgage? I am interested in the protection that the LLC offers, but my main priority is acquiring another property as quickly as possible. This is a problem since I am a student with not-so-great income. I need all the help I can get when facing a bank later.

Also, what can I do about the mortgage expense? It is not under my name, but I am paying it. How and where would you report that? 

It's a strange situation that I can't find much info on. I greatly appreciate any advice you can give me on these topics. Thank you all very much. 

 Since the quitclaim will be a transfer from herself to me and herself, I did not think about refinancing into my name. I assume this would hurt my goal of buying another property soon by adding debt to my name.

I would be a little tempted if I could cash out because I owe $88K on the property and comps are now over $200K.

 It is my understanding that the quitclaim deed does transfer the interest. However, she will be transferring it from herself to me AND herself. This is solely for the purpose of legally being able to collect the rent checks in my name and report them as my income. She retains interest in the property this way, I'm just being added on. 

Hello everyone,

I cannot seem to find the answer to my question through research, although I may have gotten a bit lazy in my search knowing the knowledgeable people of BP might have the answer. Here's my situation:

In 2011 my grandmother purchased a property for me. I was 19 at the time and, despite having a decent job, imagined I would have been laughed out of any bank. So, the property is under her name. I had been paying the mortgage while rehabbing the property and later moved in. Eventually I decided it would be best to rent the property. Mortgage, tax, and insurance come in at $840 while the rent checks are flowing at $1,700. The problem is that the checks are in her name. Which brings me to my question.

I would like to file a quitclaim deed in order to be able to report this income under my name. I will make more money on paper and will have my landlord experience recorded. I imagine this will make my next purchase easier, especially due to the apparent income boost. But... will doing this disqualify me from receiving an FHA loan on my next (but technically first) purchase? Why or why not? Is there a better way to approach this?