All Forum Posts by: Wesley Mullen

@Peter Walther I will keep this in mind. When I initially reached out to the title company, they essentially advised me I needed to speak to an attorney for assistance, so this is the route we are currently going. 

@Lara White Appreciate it Lara! I responded to your PM. 

@ko 

@Ko Kashiwagi Hi Ko - yes, now that we are learning more about the process, in hindsight we should have contacted the lenders before even setting up the LLC. We are learning as we go, but at this point are seeking legal advice for assistance to complete this transition. The issue is that for one property, all members of the LLC (3) are on the mortgage, so we feel we shouldn't have an issue with the Quit Claim, but on the other property, only my partners (brother/SIL) are on the mortage, so we have concerns about attempting to move this one. We are hoping the attorney can provide advice on this..

@Sean O'Keefe - yes, as I noted to Ko, in hindsight we should have done this first. We were learning as we went, so set up the LLC first. For our next property, we will certainly thing this process through in advance so we are not in the position we are currently!

@Luis Alvarez - I spent some time reviewing the difference between a Special Warranty and Quit Claim deed on what was the best and it seemed like the Quit Claim was our best option. Because we are a team of 3, we were wanting to move the properties under the LLC for ease of organizing finances/tax implications. All 3 of us are on one of the properties, as we are the LLC, so we aren't necessarily worried about the protections of the Special Warranty. This issue is on the other property, which I am not currently on. We fear the lender is not going to allow a transition to the LLC since I am an unapproved party. We are meeting with an attorney to discuss our situation and attempt to seek options for how we can proceed. I feel we are in a unique situation, but perhaps there are others that have been where we are.

Has anyone had issues filing Quit Claim deeds in order to move rentals under an LLC and the loan being called due? I've heard this typically isn't an issue, but I was curious if lenders were being aggressive with this clause to take advantage of the higher rates currently compared to the sub-4% rates locked in a few years back.

@Erin Church Thanks for your insight - we will likely go that route and see what we can find out. We didn't have any attorneys with our closing, so we'll have to locate someone (who hopefully has experience with investors!)

Hello,

I am looking for local (Norman, Oklahoma) real attorney recommendations. We are trying to move our existing rentals to our LLC and everything points to having an attorney assist with this transaction. It seems the main decision is deciding between a Quit Claim deed and a Special Warranty deed, with the latter being the recommended method. However, it seems it's advised to have an attorney assist with this transaction. I appreciate any recommendations.

-Wes

@Peter Walther @Erin Church

I apologize it's take so long to respond. So it seems we would need to decide between a Quit Claim Deed and a Special Warranty Deed in order to move the rentals under the LLC? It seems like the Special Warranty deed would be preferred, but are we required to designate a transaction figure? I'm assuming there is a minimum requirement and we can't transact for $0.

I did reach out to the title company for assistance, but they advised they could only assist if we wanted to transact/sell the property to the LLC. Is this the preferred route with another re-close? Otherwise they advised we needed to speak to an attorney (assuming for assistance for a Quit Claim deed).

Hi everyone, 

I've been MIA from BP for a while, but need help/advice on the steps to move our existing rentals to an LLC. Can someone provide a step by step process that we can follow (or point me to an existing outline) or do we need to hire a real estate attorney to complete this process? If an attorney is necessary, are there any good recommendations in the Norman, OK area?

Background:
I am a 50/50 partner with my brother/sister-in-law. We have two rental properties that are on mortgages and are managed by a PM. I'm aware that everyone warns about the 'due on clause' that people warn about when attempting to move rentals under an LLC. Has anyone ran into these issues in Central Oklahoma? Given we are partners, it will be easier to manage the properties under an LLC.

Is there anything else we should be aware of when working through this process? 

Thanks in advance. 
-Wes

@Katie Miller Honesty, we are hoping just to get one this year. We got our first property in early 2021 and had hoped to lock up a 2nd or 2 more units in 2022, but due to high prices, surging rates, and lack of inventory, we we're forced to the sideline. We were able to grow cash reserves, but I feel the majority of investors have done the same in recent months, all in anticipation of the same thing: market decline.

@Terrell Garren That's impressive and well done taking the initiative to get your GC. Did you have any prior background knowledge leading up to it? I certainly feel you on the hot market and difficulty in finding cashflowing properties these days. I feel like everyone has gotten into investing in revent years, which has driven competition off the charts. Combine that with the current market, it's very difficult to pursue properties without using creativity these days.