All Forum Posts by: Ned Carey

@Tatyana Sherban Considerations are speed, imterest rate and other terms, hassle and complexty of getting loan, and in some cases probablity of getting loan. 

Most new investors consider the lowest interst rate as most important.  The same investor who would gladly give away 50% of a deal for a money partner complains about a 15% interst loan. 

As @Tom Gimer and @Peter Walther write, why wouldn't they isure is a vital question. 

Some title insurers simply don't insure tax sales period. Some do but the tax sale has to be done properly and title otherwise good. Getting a foreclosure judgement is different than getting one that will withstand a challange and be insureable. 

@Gabriel Zepeda I am not a mortgage broker and am not in touch with current programs. 

I can tell you that Various "Streamline" mortgages become available when rates drop.  Most of this sounds like it could be legit - Except the rate is too low. It is below todays rates.  If it is legit any legit lender/broker should know about the program and be able to verify if it is legit.

One way to ell a scam is to see if everyone else offers something close. If it sounds to good to be true and everyone offers it, it can be legit. If it sounds to good to be true and only one person has secret access to it - it is a scam. 

@Russell Brazil Thanks for the shout out.

@John Byrley I have several I work with in the Baltimore area for tax sales. Whether they will settle one in Saint Mary's county I dont know. Try Dulaney TItle in towson, Clearview Settlement, New Word Title in timoium or Crown TItle in Catonsville. Those are ones off the top of my head that we use a lot. 

@Mark S. interesting point which I didn't know. Thank you for pointing it out.

My point for others reading along - People often make bad choices becasue they only look at the ways it MAY work out, and ignore the risks of how it may not work out. Despite simiilar names an LLP is a deferent animal than an LLC.

@Bryan Melendez although section 8 is a federal program, each office is run by the local jursdiction. In Maryland for example Baltimore county and baltimore city are run by different offices with different rules. 

In my area you dont apply as  "Landlord" once you have a section 8 tennat application they inspect your specific property to make sure it meets there standards. 

In my area section 8 tenants tend to stay longer and in many neighborhoods section 8 pays a higher rent. Not all section 8 tenants are bad as some would have you believe. We havr had very good luck with section 8. 

I am not an attorney so I cant give legal advice. However my laypersons understandinig is the type of deed won't matter because you are selling the property from you to your own LLC. Does your LLC care whether you warranty the title or not? What does matter is the title insurance you get when buying in your own name will not transfer to your LLC unless you get new title insurance. If the title insurer wants a particular type of deed that is what you should use,

@Taylor Cook no you do not "have to' get a loan in your own name, the lender is just not willing to finance an LLC. The problem if you quit claim the property from you to the LLC you may trigger the "due on sale" clause of the mortgage. Also the title insurance you got when you bought would not transfer to the LLC.

While many people do this and get away with it, you  need to realize ther are costs and risks for doing this. As @Chris Seveney mentions LLC can be pierced by the courts and you can be help personally reposnsible for LLCs debts. My guess is that by itself this strategy would not cause an LLC to be pierced but it would certainly contribute to it. Why have and LLC if you are going to play games with how you run it?

@Bryan Melendez what do you mean by 

     "My goal is to submit a couple of landlord applications" ?

That is generally not how the process of renting to section 8 works. 

@Taylor Cook clearly soeone is not understanding the situation. My guess is the issue is; there is no attorney at the title company and in your state an attorney is required to create a deed. It wouldn't make a difference if it is a quit claim or warranty deed in that situation. 

Are you buying this in your name and then trying to quit claim into an LLC? f so why not just buy it in the LLC. Do you already own this and now want to move to your LLC? in that case the deed doesn't really matter but you will lose your title insurance unless the tranfer is a new title policy. Why would yoiu want to use a quit claim deed. They are a poor choice in most situations.

Without knokwing exaclty what you are doing here is is hard to say.