All Forum Posts by: Mike Flora

The only reason to do this, in my opinion, would be if you really love this property and you know there are gonna be multiple offers on it. Your cash offer with a quick close will most likely best out your competition. You can probably lower the price just a bit as well to cover your refinance costs after your purchase and I would imagine you could do an immediate refinance with the delayed financing. So I would only do this if I really really just loved the property and had to beat out for sure competition. And if your gonna make an all cash offer make the closing a fast one as well to improve your position over the other buyers. Otherwise just pull a loan and do the one purchase. Just my thoughts on this one.

Teri B. This doesn’t sound like you would have a problem with just including your spouse on the deed/title. If it’s just your name on the LLC as 100% Owner then there is no issue. Our issue was that we own it 50/50 and we wanted to refinance into a conventional loan in one of our names. Fannie would not let us do that. If it was 51% me and 49% my business partner then I could have put it in my name. The quit claim was to just have the property itself in my LLC name and keep the loan in my personal name. Title insurance really has nothing to do with this quit claiming part at all. Fannie/Freddie won’t let you have loan and title in LLC name so it’s just a little trick you do at closing in Escrow to keep the actual property in the LLC name. Yes the due on sale clause is in play but can be fixed if ever an issue since your the owner of the LLC. Be shocked if that ever was an issue on this matter. I’m sure there are lenders/Escrow and title people that can add to this. I’m not an expert on the lending/title side but have a pretty good grasp of my situation after speaking to my lender again. Let me know if I misread your question and responded wrong. Thanks

Harjeet Bhatti thanks for the info, we are going to quit claim deed the property into the LLC name at end of escrow but the financing will be in my name. Just getting through the refinance process, as explained in original post, was the problem. I already understand the due on sale clause with how I’m doing this but not too worried about it and not worried about rectifying that problem if it arises.

You can have conventional financing and have the property in your LLC name. At the very end of the transaction in Escrow quit claim the deed into your LLC. The loan will be in your personal name and the property will be in your LLC. We are doing this now on two refinances of ours. You will be allowed up to 10 properties, with funding in your name, of conventional financing. Don’t stress about the due on sale clause, the LLC is already in your name and there are always ways to rectify a problem if the bank/lender even have a problem with it.

Harjeet Bhatti thanks for the info, but what if I transferred the amount of purchase to my personal bank account and considered that money to me a paid salary from LLC, than made the purchase in my name with those funds and did my cash out refinance. Would this work?? Maybe there is a seasoning period with this? I know another solution is just changing our LLC’s to 51/49 ownership and get the 10 each that way. We don’t want to wait the 6 mo the seasoning anymore for our first 10 rental properties.

Ran into a small problem with a refinancing problem with my LLC, which is 50/50 ownership. Problem was with our cash out refinance at 6 months. Fannie stated that both of our names needed to be on the loan for the cash out refinance because we are 50/50 owners. We each can have ten properties with conventional financing and we want 10 properties each but having to put both our names on the loan takes that option away. Plan is, if we can do this, buy property all cash from our LLC checking account and put title in my personal name, then do immediate cash out refinance (delayed financing). Problem might be that Fannie will look at where funds came from, our LLC account that’s owned 50/50 and we run into the same problem????? I already know other solutions to this problem but this is how we want to do this in the future. We are also quit claiming back into our LLC at close of Escrow so loan will be in one of our names and property in the LLC name.

Just flat fee list it where there is no sellers agent commission and offer the standard buyers agent commission in your area. We do this with all our flips and it’s $160 to list it with a flat fee broker.

Cara Lonsdale that’s what we are probably gonna do after speaking to my lender, but we just had not gotten to all options or avenues yet. He didn’t know for sure about both names on the loan and being able to have 20 properties so I put that up here for all you. I was looking for the path of least resistance on the issue. Seemed like that would have been but it’s a no go. In the future we will be doing delayed financing for our rentals from now on and not waiting the 6 month seasoning and getting it done right instead of this type of small hiccup. Thanks for your response on this.

Cara Lonsdale and the private money loan was in our LLC name as well for our 2 rentals.

Cara Lonsdale yes, we want 10 properties each. The problem was that we purchased with private money and property is in our LLC name. We own the LLC 50/50. Fannie stated we cannot cash out refinance in one of our names and one of us has to have more ownership than the other. Don’t know why that is but my lender is working on other options. We want 10 rentals each with each loan in our personal name and the property in our LLC name. I was asking if we both have our name on the loan we could qualify for 20 loans with both names on the loan. Obviously we can’t work it that way to solve our problems with the refinance. It was just an idea.