All Forum Posts by: Inderpreet Singh

1. Any recommendation for an umbrella insurance? My investment property insurance would not provide umbrella unless I have all the insurances under them - Vermont Mutual and it's too much to move Cars[Geico], residence etc into one insurance just to buy one Umbrella insurance. 

2. Any other recommendation to ensurebthat umrella insurance is full proof and that it actually works and they dont bring that one disclaimer if and when it comes for actually paying for the insurance claim,  if ever.

Quote from @Chris Seveney:

Quote from @Inderpreet Singh:

I have a multifamily property that I closed - residential investment loan. 

My real estate planner suggested creating

1. Create a Limited Liability Corp [LLC in my state] and recording the deed into Commonwealth.
2. Since the property is under mortgage, just transferring to LLC will most likely trigger the "due on sale clause".
3. Add "Continuity of Obligation" between the note bearer [Me] and the mortgage company to prevent "Due on Sale Clause"

Suggestions?

how many units is this property?

Seems like an overkill and all you need is an insurance policy as any good attorneys first question will be "how much did the LLC who is to be separate from you pay for the property" - when the answer is zero and it was gifted. the next question will be do you gift properties to others as well? Is this a common theme? When you say no only to my LLC then they will say how is that arms length transaction? Pierce that corporate veil like a water balloon.

I have a few buildings and each with 4 or less and hence residential investment loan. 

i agree and have come to the conclusion to increase the liability insurance by 500k. 2nd- buy an umbrella insurance from the same/different carrier. 

However it still doesn't solve my other objective. I want to segregate the liabilities and assets of one property to another. So while Umbreall insurance will provide me protection but how do I keep liabilities [Without a LLC] restricted to one property asse. 

Quote from @Scott Allen:

@Sharad Bagri Speak with the title company that helped you close the deal and ask if they can have their real estate attorney help you do this. It's very common to do. 

It's also common that a lender makes you close in your personal name for a conventional loan then the deed is quit claimed into an LLC.

A real estate attorney helps you do this. The title company you used most likely will have one that can help you do it. If not, reach out and I can send you some referrals. 

 Do you have an attorney in MA that you believe can do the Quit Claim deed?

I have a multifamily property that I closed - residential investment loan. 

My real estate planner suggested creating

1. Create a Limited Liability Corp [LLC in my state] and recording the deed into Commonwealth.
2. Since the property is under mortgage, just transferring to LLC will most likely trigger the "due on sale clause".
3. Add "Continuity of Obligation" between the note bearer [Me] and the mortgage company to prevent "Due on Sale Clause"

Suggestions?

I have a LLC that I did not use and have to pay taxes - no big deal $500. But any recommendation on a good attorney who can help transfer title for the property in the LLC in MA?

Hello 

I am a 1st generation immigrant and got into real estate by accident. I do it passively but this so called passiveness has given me enough itch to contemplate more active contributions in my portfolio. Portfolio is all multifamily buildings. Look forward to learning from all of you.

If you are in Newton, Natick, Ashland area- hit me up