All Forum Posts by: Anthony Stokes

I have a rental property that I paid cash to purchase and rehab and now have tenants in the property. I want to refinance out and get a 1st mortgage on the property. I also want to put the property in the name of an LLC to protect my personal assets from any liability. Do I get the mortgage in my name personally and then form the LLC? And if I do that, by changing the ownership of the house, aren't I in default of the loan? Just trying to figure out how to do this right, any help would be greatly appreciated...

I am glad that you asked this question because I am in the process of doing the exact same thing. The responses on this thread gave me all the answers and information I needed. Good job to everyone who replied.

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Never mind Eric. I received the seller signed docs on 1/29/08, so I am good to go. I was trying to close on this property since the end of Dec "07" and the seller kept changing the dates because of issues like clearing the title, and obtaining the final water read/bill. The seller had to pay the delinquent water bill (5k and some change). The seller also had to pay the title company 12k at closing. Thank you for responding.

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I closed in escrow on a REO property 1-30-08. The title company said that the seller docs should be received in 24-48hrs. I asked what happens if they do not receive the sellers docs in this timeframe and she said that it would be a re-closing in which I could pay more or less. My question is how can this situation benefit me legally since I have already paid the closing costs and I am waiting on the seller? If I was to breach the contract at closing as the buyer, I would be responsible for many fees and possibly facing legal action.

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Welcome Ebony. Good luck to you and happy investing!

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Interesting. Thanks a lot for the info Jon.

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Originally posted by "Wheatie":

Those phrases and words you suggest are also going to tell lenders you're an investor. When discussing this with the mortgage broker I mentioned above, I proposed various "Zork Investments", "Zork Holdings", etc. His suggestion. Just Zork (that's not really what I'm thinking of using, BTW.) With the proper LLC or Inc. suffix.

Jon

Waiting for a response from you Jon. If the lenders know that you are an investor, how is that used against you?

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Originally posted by "Wheatie":

With the exception of a few specific words like "Bank", you can put whatever you want into your name.

According to my mortgage broker, lenders don't like names like "xxx properties" and "xxx investments". Just a data point.

Jon

Wow! I was totally unaware of that. So what negative effect will it bring when you are trying to conduct business with these lenders and your "LLC" includes "investments" or "properties"? Why is there a downside for them knowing that you are an investor?

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Especially on this site! But that is what make it the success it is.

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Welcome to biggerpockets Dan! Always good to see another Michiganer on the site. This is the perfect place to obtain information and increase your REI knowledge. Tons of information! Good luck to you and happy investing!

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All Forum Posts by: Anthony Stokes

Anthony Stokes has started 3 posts and replied 34 times.

Post: saginaw & detriot investors

Post: LLC will own the property - what kind of mortgage do I get?

Post: What are my legal rights and options?

Post: What are my legal rights and options?

Post: Newbie in Northern New York

Post: So whats in a Name ? holdings, properities ETC (then) LLC

Post: So whats in a Name ? holdings, properities ETC (then) LLC

Post: So whats in a Name ? holdings, properities ETC (then) LLC

Post: Greetings form Chi-Town

Post: Dan from Michigan