Newbie Rei Needs Help!
I am new to the REI game. I see it as a great way to make extra cash. I am trying to secure financing with out putting my personal assets at risk of a bad investment deal. I know the power of LLC's and S-corps for liability and tax benifits. However, the problem I am having is that lenders don't want to lend money to a newly formed company with no assests and track record. Are there creative ways to secure fininancing that will give me the liability protection of incorporating and and at the same time protect my personal assets?
It is possible to purchase a property in your own name and then immediately transfer the asset to an LLC. This transfer is not subject to taxes if it done through the creation of the LLC. I've also found that most banks won't have a problem putting the property into an LLC for "estate planning" purposes. Typically if you ask up front they will say no but after approval they will say yes. You will likely still guarantee the note personally depending on LTV ratios.
Thanks for your reply. When you transfer the deed does the mortgage note transfer to the LLC as well?