Transfering Personal Investment Homes To Llc
If I transfer the personal loans to an llc, does that mean I have to refinance under the llc? If I keep it under my personal loan can the bank call on my loan if they see that it is in a llc? What is the better solution, to keep the cost low but having the properties protected. LLC, living trust.... any suggestions?
Most banks will not allow you to refi into an LLC. If you have a bank that will, then by all means do it. The protection that you get is very important. Also, according to my lawyer, you should use an LLC or corp to protect your assets, not a living trust. The trust will hide your name from the public, but will not protech you in the event of a lawsuit.
On strategy that a lot of investors in Illinois use is to put the property into a land trust, then name the LLC as the beneficiary of the trust. This way, you are protected, and the bank is not aware of the transfer, since the beneficiary of the trust is secret.
Hope this helps.
If I transfer it over to the trust with the LLC as the Ben. Who is the trustee? also won't I have to get insurance for the property under the LLC's name and won't that trigger some stuff with the mortgage company?
Thanks
Joe
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