All Forum Posts by: Justin Witt

Once you have the LLC set up just buy it in the LLC name to begin with. With that said, I just transferred all of my single family into an LLC. My lawyer said that he personally has never seen a loan called as long as the mortgage is paid every month. Technically, the bank can do it so it is a risk. But I think it's rare. Since you're in my area I can give you my attorney's name if you'd like. He's really good and answers questions like this for me all the time.

Now that you transferred all the SFH's to the LLC are you switching your ACH transfers to the LLC bank account? Or how are you going about making those mortgage payments now that the ownership has changed and presumably the bank account will change too right?

0 Votes

Originally posted by @Ley Nezifort:

@Justin Witt I'm assuming you can't put it directly under the LLC at closing because you're not putting 20% , so your lender won't let you ? I'm going through the exact same situation, and my CPA & Attorney advised me to transfer the deed a couple weeks after closing.

As far as where the mortgage payment is coming from, that is an interesting so I’ll definitely like to know the answer to it as well . But my assumption is that the bank wouldn’t care long as they’re getting their mortgage payments.

I'm actually putting 25% down. They wont lend to an LLC because its residential and not commercial.

0 Votes

Originally posted by @Keith A.:

why are you deeding to your LLC and not putting it in the LLC's name to begin with? I believe the bank can call the note if they find you've deeded it to another entity.

Yes they can call it due, that's what I was referring to when the attorneys advised me to do it anyway because the chances are slim. I am not putting in an LLC to begin with because residential lenders aren't lending to LLC's just commercial lenders.

0 Votes

Closing on another duplex soon and would like to know how long you guys wait after closing to quit-claim the deed to an LLC?

Also, do you guys have the mortgage company ACH the mortgage payment from the LLC's bank account?

And if so, won't they see that is an LLC on the account and not the person they lent to?

Or do you guys just have a personal bank that you transfers the rent payments to as a deduction?

The mortgage companies I spoke to say your not allowed to transfer title but most attorneys tell me just to do it. So I am trying to figure out the specifics now.

0 Votes

Originally posted by @Max T.:

chill, it is coming

lol. I am not worried about when I am receiving it. Obviously a tenant that lives paycheck to paycheck would be though. Chill.

0 Votes

Originally posted by @Ryan B.:

I've used cozy for years now. I'm not 100% sure, but it seems like it comes out on the day before you get it. So, if you've been told 5 days, expect it to be pulled at day 4.

Great, thanks!

0 Votes

Hello,

I am new to using rent collection on Cozy. I know I am supposed to receive the rent in about 5 business days but does any know when the money is actually withdrawn from the TENANT'S checking account? It is the 2nd and my tenants contacted me saying that it hasn't been withdrawn yet. On the cozy website the payment says the balance is zero and the payment is processing. Any additional information would be appreciated, thanks!

-Justin

0 Votes

All Forum Posts by: Justin Witt

Justin Witt has started 4 posts and replied 9 times.

Post: Fix and Flip single family home by the beach

Post: Fix and Flip single family home by the beach

Post: Quit claiming Deed to LLC

Post: Quit claiming Deed to LLC

Post: Quit claiming Deed to LLC

Post: Quit claiming Deed to LLC

Post: When does cozy withdrawal from TENANT'S account?

Post: When does cozy withdrawal from TENANT'S account?

Post: When does cozy withdrawal from TENANT'S account?