@Daniel P. from what I have learned, many MANY investors have done exactly what you and I are trying to do. I think as long as you don’t have your insurance and taxes escrowed, the chances of the lender discovering the deed transfer are very slim. Brandon Turner has mentioned on the podcast that of all the deals he has done and investors he has spoken with, he can only think of one time that a note was called due. And in the instance the bank just let the investor deed it back to himself. So I think we’re ok there.
That being said, much of that history was during a falling/steady interest rate environment, so banks had little incentive to call a note due as long as they were still getting paid on time. The way I see it, if the loan is at 4%, but current rates get up to 6-8%, banks might start calling these investors and calling the note or forcing a redo at a much higher rate.
Finally, I did speak with a local bank that could get me 5.3% 15 yr fixed underwriting the LLC, but I have to open a savings account and reside in my county. So I guess it's possible.
Thank you for the feedback and let’s keep each other informed on the progress.
