How To Transfer A Property With A Mortgage To A LLC

Comments(4)

• 
  jorge12131st July, 2003

  To answer your question of whether it is possible to transfer the property to an LLC the answer is yes. It is possible. Simply execute a deed to the name of the LLC. The question of whether the LLC itself will qualify for a mortgage, you'll want to speak to a bank officer or mortgage broker on this one. I think you will likely have to show 2 years of profit and losses for the business in order to qualify.

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  tmratl31st July, 2003

  My experience has been that you cannot get a conventional mortgage in the name of a business. If the mortgage is not in the name of an individual, you must get a commercial loan, which carries higher interest rates than an personal mortgage.
  
  I learned this the hard way on my first offer a couple of years ago. After a contract had been negotiated and accepted, I submitted it to my mortgage agent, who told me that I could not get a traditional Fannie Mae type of mortgage if the contract was in the name of a business. When I asked the seller to sign an amendment, he decided he wanted to renegotiate other terms and the deal fell through.
  
  That's only my experience, but I would ask a few mortgage agents before submitting a purchase offer in the LLC's name.

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  Stockpro9931st July, 2003

  I do know that generally the transfer of property is easy and is done as Jorge said. What probably will happen transferring the deed to an LLC is that it may trigger the "due on sale" clause if you record the deed etc. and the Lien holder becomes aware of it. My guess from past experience is that he would.
  [addsig]

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  Stockpro9931st July, 2003

  I have borrowed $$ through my LLC. They want a Dunn&Bradstreet rating and basically you need to have a seasoned corp/LLC.
  Seasoned ones are selling on Ebay for up to $4000 vs. a few hundred for a newbie.