Comments on: Buying Investment Property – Entity Protection http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Jacques http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-339032 Jacques Wed, 22 Apr 2009 06:20:37 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-339032 I have 2 properties that I am currently renting out. I have mortgages on both, but I want to sell one to pay off the other property which will remain a rental. Can I create an LLC and buy my own property and avoid some of the complications of selling a rental and commercial taxation issues. The property I'm selling is in Hawaii and the property I would be paying off is in California. I have 2 properties that I am currently renting out. I have mortgages on both, but I want to sell one to pay off the other property which will remain a rental. Can I create an LLC and buy my own property and avoid some of the complications of selling a rental and commercial taxation issues. The property I’m selling is in Hawaii and the property I would be paying off is in California.

]]> By: Marsha http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-323566 Marsha Tue, 19 Aug 2008 16:30:41 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-323566 My siblings and I have have just purchased an old school bldg, located in Morgantown, WV. Plan in the near future to tear down the bldg. and build townhomes. We are going to form an LLC. Any advice on what type of LLC? Also I have a question regarding liability. We have boarded up all windows, shut off all utilities, gated off the entrance, posted private property and no trespassing signs and we ar in the process of removing all playground equipment. Is that enough to protect us if someone gets hurt on something (who knows what)? Also please feel free to offer any other advice that may be helpfull. Thanks so much to everyone. My siblings and I have have just purchased an old school bldg, located in Morgantown, WV. Plan in the near future to tear down the bldg. and build townhomes. We are going to form an LLC. Any advice on what type of LLC?
Also I have a question regarding liability. We have boarded up all windows, shut off all utilities, gated off the entrance, posted private property and no trespassing signs and we ar in the process of removing all playground equipment. Is that enough to protect us if someone gets hurt on something (who knows what)?
Also please feel free to offer any other advice that may be helpfull.

Thanks so much to everyone.

]]> By: ricardo fojas http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-254076 ricardo fojas Fri, 01 Feb 2008 20:32:08 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-254076 Can I transfer my personal loan to my LLC business loan? What's the steps for this? Can I transfer my personal loan to my LLC business loan? What’s the steps for this?

]]> By: jim http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-245164 jim Thu, 17 Jan 2008 10:00:05 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-245164 I have a rental property in Anchorage alaska and one in downtown denver. I should put them both in a separate llc, right? can you help me with this. I have a rental property in Anchorage alaska and one in downtown denver. I should put them both in a separate llc, right? can you help me with this.

]]> By: Ed http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-231857 Ed Sat, 22 Dec 2007 17:55:15 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-231857 I want to transfer title of two properties I own, both 4 units each, but I am not sure if the bank I am with National City Mortgage allows this to be done. Has anyone done this with National City Mortgage? Please email me with suggestions. PhilEdBrook@gmail.com I want to transfer title of two properties I own, both 4 units each, but I am not sure if the bank I am with National City Mortgage allows this to be done. Has anyone done this with National City Mortgage? Please email me with suggestions.

PhilEdBrook@gmail.com

]]> By: Chris Jones http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-196051 Chris Jones Fri, 19 Oct 2007 14:53:44 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-196051 Can I get a small loan for like $10-$20,000 under an LLC to buy my first investment property without any type of personal guarantee? My credit is very bad right now. What are my options besides and in addition to fixing the credit? Can I get a small loan for like $10-$20,000 under an LLC to buy my first investment property without any type of personal guarantee?

My credit is very bad right now. What are my options besides and in addition to fixing the credit?

]]> By: RIP http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-194567 RIP Tue, 16 Oct 2007 06:59:09 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-194567 I would like to move title of an investment property into an LLC without the 'due on sale' clause triggering. Has anyone done it with a trust as a transfer vehicle? Any experience here and cost would help! The lender allows transfers to a trust but not an LLC. Lender is proposing that I refinance the existing loan to transfer property in the LLC. I would like to move title of an investment property into an LLC without the ‘due on sale’ clause triggering. Has anyone done it with a trust as a transfer vehicle? Any experience here and cost would help! The lender allows transfers to a trust but not an LLC. Lender is proposing that I refinance the existing loan to transfer property in the LLC.

]]> By: Kay Lewis http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-192299 Kay Lewis Thu, 11 Oct 2007 03:23:53 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-192299 My parents have a commerical building that is currently rented. The property is free and clear. They need money to keep the building up and pay taxes they owe. Can they borrow money against the building as an LLC? They thought about borrow against their primary home for the money. Which loan would be better ? I know the rate on the primary would be better, but which loan would be better as far as protection and taxes ?? My parents have a commerical building that is currently rented.
The property is free and clear. They need money to keep the building up and pay taxes they owe. Can they borrow money against the building as an LLC? They thought about borrow against their primary home for the money. Which loan would be better ? I know the rate on the primary would be better, but which loan would be better as far as protection and taxes ??

]]> By: ARDELL http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-187020 ARDELL Sun, 30 Sep 2007 17:07:34 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-187020 Allan, She and her brother would not be the ones getting the loan. If they want their respective 1/3 share paid as cash, the third owner (the heir(s) of the deceased brother) would be getting the loan to buy them out with, not them. The owner who doesn't want to sell, would get a loan to buy out the two who want out. Or all three would agree to sell the property, and no loan would be involved. I think the two owners can force the sale, since they have a majority interest. But the two of them getting a loan doesn't accomplish the objective of "getting out". It just creates a debt. Their cominbed 2/3rd interest doesn't convert to a cash asset unless the property is sold, or the remaining owner buys the two of them out, with a loan obtained by the owner who isn't the two of them. Hope that helps. I'm not a lawyer, but I used to be a trust officer for many years. I'm pretty sure that's how it works. If the third person doesn't want to sell or get a loan to buy them out, they need to see an attorney, if they want to force the third person to sell or buy them out. I think they would get a court order to sell, and then the third owner may have a short time to get a loan to buy them out, especially if the deceased brother's heirs live in the house. Allan,

She and her brother would not be the ones getting the loan. If they want their respective 1/3 share paid as cash, the third owner (the heir(s) of the deceased brother) would be getting the loan to buy them out with, not them. The owner who doesn’t want to sell, would get a loan to buy out the two who want out.

Or all three would agree to sell the property, and no loan would be involved. I think the two owners can force the sale, since they have a majority interest. But the two of them getting a loan doesn’t accomplish the objective of “getting out”. It just creates a debt.

Their cominbed 2/3rd interest doesn’t convert to a cash asset unless the property is sold, or the remaining owner buys the two of them out, with a loan obtained by the owner who isn’t the two of them.

Hope that helps. I’m not a lawyer, but I used to be a trust officer for many years. I’m pretty sure that’s how it works. If the third person doesn’t want to sell or get a loan to buy them out, they need to see an attorney, if they want to force the third person to sell or buy them out. I think they would get a court order to sell, and then the third owner may have a short time to get a loan to buy them out, especially if the deceased brother’s heirs live in the house.

]]> By: Allan http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-186953 Allan Sun, 30 Sep 2007 12:57:16 +0000 http://raincityguide.com/2006/02/20/buying-investment-property-entity-protection/#comment-186953 Hello, Currently my friend has a house that was given to them when their parents passed away, she and her 2 brothers formed an LLC about 3 years ago, since then one brother has passed away due to illness, now his children want to bought out of the LLC and be given their share of thier passed father. What is the best way for her and her brother to go about getting a loan? Can a LLC get a loan? ID so, what type of loan? They check with a local bank and they said they never heard of this type of situation. There is no mortgage and they want to get a loan for 1/3 of the value of the house. Please e-mail me any suggestions to albopooh@aol.com. Thank You! Hello,

Currently my friend has a house that was given to them when their parents passed away, she and her 2 brothers formed an LLC about 3 years ago, since then one brother has passed away due to illness, now his children want to bought out of the LLC and be given their share of thier passed father. What is the best way for her and her brother to go about getting a loan? Can a LLC get a loan? ID so, what type of loan? They check with a local bank and they said they never heard of this type of situation. There is no mortgage and they want to get a loan for 1/3 of the value of the house. Please e-mail me any suggestions to albopooh@aol.com. Thank You!

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