All Forum Posts by: Account Closed

Paul Schuw and everyone else here in the forum: My understanding is that the issue in transferring the property to an LLC is when the property has a mortgage. Since the mortgage was issued in your personal name for the property to be owner-occupied, the bank usually won't allow the transfer. Don't get me wrong, you can still transfer the property to an LLC, but it can trigger the due on sale clause. As a matter of fact, most banks won't call for the balance of the loan to be payable in full as long as you continue to make the payments, etc. But they (the banks) have the right to do so. It's a matter of weighting the pros and cons. If the property is free and clear, well you can transfer the property to an LLC freely. In my case, I just want liability protection from say, someone slipping and breaking a leg while I'm my property. I don't want to give the bank the "right" to call the loan payable, even if they don't call the due on sale clause, I don't want them to have the option to do so. I just don't know if good insurance is enough. I'm afraid I can end up with a judgment against me if insurance doesn't fully cover everything.

I'm trying to decide if I should use my LLC as a DBA for some of my real estate ventures such as wholesaling or staging instead of creating a separate LLC for each venture. I might do those ventures only short-term or maybe even just create their own individual LLCs as I expand and grow with those ventures. I don't hold any real assets or properties in my LLC as of now. The LLC will be just there so I don't operate under my own name and for personal liability protection. At first I thought about using my LLC as a "parent" or "holding" company and creating LLC subsidiaries for each venture. I don't want all the expense and hassle of structuring something complex until I get to that point in the future. For now I just want to focus on growing my business and thought that using my LLC as a DBA could be the easiest and best way to go for now. Any thoughts?

I will be getting a list of inheritances from US Lead List. You can also compile your own lists. For instance, I have sent letters to a list of referrals and FSBOs that I have. I got the list of FSBOs from different online sites and referrals through individuals that know I do real estate and send me tips such as this landlord friend of mine wants out of his property, etc. Probably the FSBOs list is not a gold mine compared with other lists but I have had a couple of good leads from very motivated sellers who called after I sent them a letter.

Have you tried any unconventional marketing methods with success? The type of marketing methods not so many wholesalers use or methods that are quite not common sense but that work great?

For those of you who's primary residency became a rental and the mortgage is still in your personal name, what are your thoughts on transferring the property to an LLC vs just having good insurance in place? Ideally it would be best to do the transfer to an LLC but given the risk of the due on sale clause is it worth the risk or just having good insurance in place would be just fine for liability protection?

Join your local real estate investors association (REIA). It's a great way to network with people in the industry.