All Forum Posts by: Gary Fraser-Lee

 Wow, This seems to be somewhat of a bias knock on the Midwest.   There are certain areas of the upper Midwest that have significant housing shortages... Grand Rapids MI, Traverse city MI, Columbus OH. Detroit is a very interesting inexpensive market.  "Rust belt"?,  Hmm, that term is from the 70's.

 But if I move it to a revocable trust it is still a change to the deed and mortgage company could execute the due on sale clause on the mortgage.   My mortgage rate is like 4.5 %, so don't really want to refinance also given the additional closing costs.

Yes, the objective of moving the property into an LLC was personal protection. I have the property insurance in my name and also an umbrella policy in my name. It sounds like if I keep the existing mortgage (in my personal name) then maybe i just depend on the property insurance and the umbrella policy. That makes sense.

Im not really willing to raise my mortgage interest rate 3 or more percent just to get it under the LLC. Property and Umbrella may have to be sufficient "protection".

Thank you all for your responses.  They make a lot of sense especially Russell Brazil and Jay Hinrichs. So bottom line is that If I really want to be protected from liability under an LLC on a rental property, then either refinance the loan into the name of the LLC after changing the deed, or pay off the loan.

AND advice for those just buying their first rental, get his all set up before you purchase and finance your first property!

Thanks

I have a rental property that I want to move into a newly created LLC in order to get it out of my name directly.

Since I have a mortgage on the house, I reached out to the Mortgage company and they say that I can not change the name on the deed from myself to the LLC. (Quit claim deed to the LLC?). This will trigger a due on sale clause that is apparently in my contract.

The mortgage company says that since the loan was originated previous to June 2016, by Fannie Mae rules they can not approve the change of name on the deed.   They say it will get reported to them, if I were to change the deed at the county, as they have a lien on the property.  

Does anyone know if I can get around this issue with the mortgage company?

Thanks.

Erin,  you mention $20 invested.   but the purchase price was 10,200.   Was this a purchase option, that you then found a buyer for and did a double close at a title company with?

 I assume you are going to call the county Planning/Zoning dept for your answers, not going throug the listing realtor for answers?

You posted this three days ago...  what did you find out?

If you can not build on it, what is the exact reason that the county gave you as to WHY?

The answer to these questions determines a great deal towards what the property may (or may not) be worth.

Tell me if I am wrong, but I didn't think the Land Contract document needed to be recorded at the county.    But once the land contract is paid complete, then yes, the new deed transfers to the new owner and that new deed needs to be recorded along with an affidavit at the county office,  but at that point the paid in full land contract is irrelevant.

The property/Deed doesn't get transferred until after the land contract is paid in full.

I believe what she is saying about last year's list is true.   I asked (after the auction) for the remaining unclaimed properties list.   I had to wait until they got offered to the local entities, i.e. cities and townships to assume.     After that process there were non left.

As part of the City of Grand Rapids rental property inspection, i need to get my furnace and hot water heater "approved".   As part of that I need to get a liner installed in my chimney where the hot water and furnace are vented to.    I need to re-do the venting a bit after the liner is installed.   While I am doing that I am going to get a new water heater.

I have two estimates, one that I like from "the" major plumbing and heating store in G.R., but they will not file the approval certificate with the city after the work is done...  almost sounded like a protest statement between that business and the city (I don't blame them).

So fellow GR landlords;  who knows a good plumbing/heating contractor that is registered with the city to do these inspections and file paperwork along with getting a new hot water heater and chimney liner / venting work done?   OR a registered contractor that will simply inspect and file the paperwork after I have the fore-mentioned contractor do the actual work?