All Forum Posts by: Eric Stoltz

@Jaysen Medhurst unfortunately these aren't fannie mae loans.  I was expecting to have to look up an Asset protection lawyer but figured I would ask here first.   

Its been a while since I've been active on here. In the last 3 years we've picked up 7 new properties out of state doing 30 year fixed financing and holding the properties under our own name. While I know I could try and quit claim the properties to an LLC for asset protection I don't want to take a risk on the due-on-sale clause. However we are considering buying property number 8 as a cash deal in order to boost our monthly cash flow. I'm considering forming an LLC for the property. We currently reside in florida but the properties are located in Tennessee. Do I need to form the LLC in Tennessee or Florida? We are also considering just doing an umbrella policy instead depending on the complexity of doing the LLCs. We already have experience forming LLCs so there isn't necessarily a learning curve to the actual formation.

Thanks

Can you clarify. Don't finance with Fannie Mae or don't try and QCD it afterward to move it into an LLC?

I am getting ready to purchase multiple houses as investment properties. While the banker is telling me that Fannie Mae will write loans on investment properties as long as there is 25% down (30 year fixed) they do require that it be titled in the individuals' names and not an LLC. So two questions:

1. Is my banker simply skirting some rules with Fannie Mae and presenting it as a non-investment purchase and

2. Will I trigger a loan repayment by performing a QCD to my LLC which is owned by the individuals that will be on the title? The individuals would still be on the loan so I don't see an issue but then I'm not Fannie Mae and they aren't exactly a logical entity.

Thanks for the help.  

Been lurking here for a while but I am a part time investor in the DC area.  I'm looking to network with people locally but right now I am looking to find a property manager that can handle a growing portfolio in the Maryland area (Montgomery Cty) and Northern Virginia (Prince William Cty and stafford cty).  If anyone can recommend someone I would be grateful.  Please PM me