Problems With LL Name On Deed?

I'm just getting started, so I bought my first few SFR rentals in my name. I wanted to keep at least a little "distance" between me and the tenants, so I created a property management company, of which I'm just an employee. (If they knew I owned the place, they'd treat me very differently.)

I thought it was going fine until one tenant hands me a letter addressed to me with her address!!

It looks like someone is trolling through the Register's books and soliciting everyone new. Besides being weird for the tenant, does this pose identity theft/fraud issues if a pre-approved credit card in my name shows up in their mailbox?

Has anyone run into this before? Should I be worried?

Thank you!

Comments(13)

  • myfrogger8th October, 2004

    In terms of privacy the vehicle to use is a trust.

    In terms of asset protection the vehicle to use is an LLC for a rental.

    I would put the property into an LLC which will remove your name from public records. If you want to go further, put the property into a trust with your LLC as the beneficiary.

  • InActive_Account13th October, 2004

    Those will definitely keep my name off the public record, but won't it trigger the Due on Sale clause in the mortgages?

  • joemac124113th October, 2004

    If people want to get your name from the LLC, they can also search public record with the Corporate Commission of your state/county. There is a process through Nevada that will completely keep your name off the record by using a 3rd party agent to represent your interests, but that is overkill for a few rental properties.

    You should expect to get a slew of credit card, home equity, mortgage, mortgage insurance, life insurance, etc advertisements down to 50 different stores selling blinds and window treatments. Deeds and mortgages are publicly recorded documents that are scoured by these marketing companies. My recommendation is just to get used to it like I have.

    There is little threat for identity theft as the person filling it out would need specific information to verify their/your identity.

    If the lender wants to be very picky, they could possibly execute your note (mortgage) to become immediately due and payable. But then they will not keep getting the interest portion of your payment, which is their business afterall. After a year of making payments out of the LLC bank accounts it will solidify that the LLC owns the proprties deeded in its name, not you.

  • InActive_Account15th October, 2004

    Thank you for the help, joemac1241. As a point of reference for me and hopefully other newbies, where can I get educated about transferring title to an LLC or land trust? Is it a DIY kind of thing, or do I just need to put myself in an attorney's hands and trust he'll get it right?

  • ykulit15th October, 2004

    Good point, I am also wondering how to go about transferring my property to an LLC ( and also how to establish an LLC), I figure the closing Atty should be able to help me on that one , on two closing I been and ask the Atty., about transferring my property to an LLC as means of asset protection, All I am getting is Huh????, they when I try to explain to them this is my means of asset protection, they would say either I don’t know about that , or I don’t think it is Legal. At this point I am kinda frustrated now, anybody out there or any company you know specially here in GA let me know, thanks in advance

  • nothanks15th October, 2004

    http://www.sos.state.ga.us/corporations/filing_procedures_llc_2001.pdf

    above is the address of the LLC formation procedure on the GA Secretary of States Website. This may provide all the information you need to set it up yourself. I used a lawyer to setup my LLC which costs about $450. You can also buy a kit from www.uslegalforms.com and others for about $50.

    To transfer the property from your name to the LLC you will have to file a warranty deed or quit claim deed. Once again I'll use my lawyer to do it though I think you can do it yourself once you know how. You won't have to refinance unless your mortgage company executes the Due on sale clause which from what I have read is very rare as long as you make your payments on time.

    If a lawyer gives you the deer in the headlights look when you ask him about these transactions, find another lawyer.

    It sounds as though your closing attorneys are not very experienced. If they were selected by the bank, the law firm the bank uses probably assigns their newest attorneys to the grunt work of basic closings.

  • ykulit18th October, 2004

    Y ou are right they are all selected by the bank, Thank you for your reply; I got a lot of info on those 2 web sites you listed, most particularly on the GA secretary of state. What I did is called an atty. And looked at a web site that will form an LLC for you. First the atty. He wants to charge you $500 for LLC formation, $100 filing and $400 fee. The web site was $149 fee, $100 filing fee and few dollars for handling. While looking at the secretary of state web site, it seems to be the creation of articles of Organization and filing fee that seems to be it. What else, any idea what constitute that extra fee, or I am missing a lot of stuff in this analysis, thanks and appreciate all the help

  • JeanMarie29th October, 2004

    One question. If you transfer your properties to an LLC, won't this trigger transfer tax? I live in Pennsylvania and wanted to roll three properties into an LLC, but backed away because of the transfer tax that I would have been charged.
    Curious to know,
    JeanMarie

  • JeanMarie29th October, 2004

    One question. If you transfer your properties to an LLC, won't this trigger transfer tax? I live in Pennsylvania and wanted to roll three properties into an LLC, but backed away because of the transfer tax that I would have been charged.
    Curious to know,
    JeanMarie

  • linlin30th October, 2004

    Sell them to the LLC for a little money

  • JeanMarie31st October, 2004

    Like $1.00?

  • JohnMerchant31st October, 2004

    Couple of points:

    First, by Fed Law, (Garn St. Germaine Act), one's deed to one's own trust CANNOT legally trigger DOS.

    Second, John Locke says he's done several hundred such transfers to his LLC or corp, and NEVER has that triggered a DOS because tghe lender doesn't care as long as their payments are made.

  • Dumdido5th November, 2004

    .I recently posted a similar question in the beginners forum, but this seems like a more appropriate place for this question.

    I'm new to this, and am confused by what a Trust is. I'm sure this is very basic, but I would appreciate it if somebody would explain.

    If I form an LLC and put the property in Trust, do I also need to open a business bank account, change the property insurance, file a local DBA, and what else ? ? ?

    This is all foreign to me and I appreciate your answers to my very basic questions

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