Thank you for this video, very informative. What If i'm buying and holding multiple properties in different states. Is it ok to use a series LLC over a standard LLC? what are the pros and cons?
191 upvoters that used a warranty deed. 1 downvoter that used a quitclaim deed resulting in voided title insurance policy. Great video. Thanks Clint! Also, where do you practice law? Im in CA, and down the road I might buy out of state in Texas or other sun belt locations.
Clint: for traditional financing, most traditional lenders will not let you change title after closing; how do you get around that? Like a change in title *can* trigger a due on sale clause.
This is very informative, thank you! What do you do with a partnership? I'm buying with my own name to secure financing, but then warranty deed into partnership llc? Or does that get complicated since I'm a single person and LOC is two people?
I'm buying my first fourplex through fha loan. It will be my primary residence for a bit. Same rules apply I suppose? Close in my name and transfer deed over?
@@ClintCoons We bought a duplex on our name but our attorney says we can’t transfer dedd because the lender always need to be paid in full before transfer the deed. Meaning I can’t transfer the deed before I paid the mortgage, and in that case I M stuck
@@mercedes9719 BS. Is it a Freddie loan? The attorney is referring to acceleration clause in your mortgage. Yes a lender can accelerate your note if you transfer the property to an LLC (Freddie allows transfers) but this is extremely rare. You are probably more likely to win the powerball lottery than have a lender accelerate your note. In 21 years I have never seen it exercised when an investor moved their property into an LLC and kept their mortgage/insurance current. If you are concerned you can always use a land trust to facilitate the transfer to an LLC.
Thanks for your content. Do you have a video on how to open a wells fargo bank acct with LLC (WY holding company) acting as the member of the LLC that owns the property? My banker was listing me as the owner of the LLC vs. the holding company as the owner. I asked him to change it....Any thoughts/advice on this?
If you deed the property to the LLC cant that triggers the due on sale clause in the mortgage loan documents? Some banks will treat it as if you sold the property even though you own the LLC is what I have been warned about is a possibility.
I don’t think the response to due on sale question was private and can’t be viewed by public. Can you please post the response/answer to the question ? I have similar problem and bank is not willing to support the deed.
For the 3rd scenario (institutional financing), do you need the Certificate of Good Standing from the state of Delaware or the state where the properties are located?
This is so interesting. I was told by a agent years ago you could create a LLC and have the LLC get a mortgage and finance a house. But this video says you can not do that.
Depends on the lender. If it is a portfolio lender you may be able to do what you were told but if it is a traditional freddie/fannie product - wont work on residential I.e., 4 units or less.
Great video as always, I’ve enjoyed all of your videos. One question, isn’t it true that you lose anonymity when your creditor look at either mortgage or insurance paperwork?
im curious, if i want to lease a property from an owner (home or apartment), is it best to do it under my name and then deed the property over to my llc that will manage it on air bnb? or is it better to buy a property?
I prefer to place the property in an LLC then lease it out of the LLC or create a leasing company to handle the business side of AirBnb. Here is a link to a video I cut on this strategy. ruclips.net/video/r5-_-_9CFIk/видео.html
JD they do not permit it but many real estate investors transfer the property despite language in the loan agreement granting the bank the right to accelerate if they desirer the transfer. This is very uncommon but it is a consideration when moving encumbered real estate into a LLC.
It could violate a due on sale clause but this is rarely enforced. I have only seen it enforced 3 times in 20 years of practice. If the bank catches the transfer then you put the property back in your name.
@@ClintCoons This is a good question. If a portfolio lender will allow the mortgage under an LLC but it will be a higher rate and shorter term, why would I do it if I can do a residential loan and swap to an LLC later? Wouldn't the lender want to refinance now that you're an LLC?
When you deed the property over to your LLC the loan will still be on your credit report? Can you move the loan to be under the LLC, and not under your credit report?
Is traditional financing a conventional loan? You did not specify.... I am purchasing a townhouse under a conventional loan and they said that they wouldn't allow me to transfer it into an LLC!!!!
Correct they will say the loan is not assignable and a transfer will violate the acceleration clause. However, you can transfer your property. You are the legal owner and a lender can not stop you from transferring. If you deed the property and the lender discovers the transfer, the lender can call your loan due. This is an outlier and does not typically happen. Many investors will use land trusts to minimize the lender discovering the transfer. Have you viewed any of my land trust videos?
@@ClintCoons I have not looked at those videos yet, but I certainly will do that today. Thanks for your input on this, I have been stressing over this for a few days now. I am going back and forth with the idea of getting an LLC because I am hearing different sides to getting one (pros and cons). Knowledge is power though :)
So with traditional financing, on a separate video you mentioned that the transfer to the LLC would trigger the due on sale Clause but, in this video, you recommend transferring it after you purchase it in your own name? Which one??
Yes transferring it to a LLC does violate the "due on sale" clause but this does not necessarily imply the bank will accelerate the mortgage. The reason I state you will buy in your own name in this video is because the loan is for a residential property and lenders will often object to the taking of title in a LLC I.e., it makes the loan a commercial loan.
@@CreativeSoul333 I would suggest a strategy session. If you would like a FREE 30-minute consultation you can request one here 👉👉 aba.link/30minSession 👉aba.link/30minSession
Get into real estate investing they said... just find a good deal and everything else falls into place they said. Oh but one more thing, be sure to start an LLC to protect your assets they said.. simple my ass..
Do you want to learn more about this topic? Register for a free consultation today! 👉 aba.link/zn5
Watch the newer version of how to Buy Rental Property With an LLC ruclips.net/video/69lQs1adQZM/видео.html
Clint, this video was very helpful. Right now I am educating myself and hope to buy my first property in about a years time. Thanks again.
did you ever buy the property?
I’m curious to know as well! How’d it go?
Me too, it's been year!
It's not as simple as go get an LLC. Real good video. Real world information, the truth.
Great video! Easy to understand and extremely helpful. Thank you
Informative and concise. You sir, have a new subscriber.
Thank you for this video, very informative. What If i'm buying and holding multiple properties in different states. Is it ok to use a series LLC over a standard LLC? what are the pros and cons?
Yes different LLC for every property 😁
191 upvoters that used a warranty deed. 1 downvoter that used a quitclaim deed resulting in voided title insurance policy. Great video. Thanks Clint! Also, where do you practice law? Im in CA, and down the road I might buy out of state in Texas or other sun belt locations.
Thank you for this informative video. I always wondered how I would do this.
Do you need a cert. of good standing in all transactions or only a cash deal?
Thank you so much for this video. This is so helpful.
Clint: for traditional financing, most traditional lenders will not let you change title after closing; how do you get around that? Like a change in title *can* trigger a due on sale clause.
Jb - did you get any solution?
This is very informative, thank you! What do you do with a partnership? I'm buying with my own name to secure financing, but then warranty deed into partnership llc? Or does that get complicated since I'm a single person and LOC is two people?
This is great info I feel like I just earned some college credit lol
Dropping gems
I'm buying my first fourplex through fha loan. It will be my primary residence for a bit.
Same rules apply I suppose? Close in my name and transfer deed over?
Correct but you may want to use a land trust to avoid the due on sale clause
@@ClintCoons We bought a duplex on our name but our attorney says we can’t transfer dedd because the lender always need to be paid in full before transfer the deed.
Meaning I can’t transfer the deed before I paid the mortgage, and in that case I M stuck
@@mercedes9719 BS. Is it a Freddie loan? The attorney is referring to acceleration clause in your mortgage. Yes a lender can accelerate your note if you transfer the property to an LLC (Freddie allows transfers) but this is extremely rare. You are probably more likely to win the powerball lottery than have a lender accelerate your note. In 21 years I have never seen it exercised when an investor moved their property into an LLC and kept their mortgage/insurance current. If you are concerned you can always use a land trust to facilitate the transfer to an LLC.
Why does the Delaware holding company also need to file as a foreign entity? Is it necessarily doing business in TX?
Should mention any tax implications that will cause. DE LLC operating in TX. More tax
Interest payments are not taxed bro
Thanks for your content. Do you have a video on how to open a wells fargo bank acct with LLC (WY holding company) acting as the member of the LLC that owns the property? My banker was listing me as the owner of the LLC vs. the holding company as the owner. I asked him to change it....Any thoughts/advice on this?
Do you have the business trust ( Non Bearing Interest ) also include Family Trust and each LLC must have thier own DUNS and CAGE number
If you deed the property to the LLC cant that triggers the due on sale clause in the mortgage loan documents? Some banks will treat it as if you sold the property even though you own the LLC is what I have been warned about is a possibility.
Thank you for your quick reply and clarification.
I don’t think the response to due on sale question was private and can’t be viewed by public.
Can you please post the response/answer to the question ? I have similar problem and bank is not willing to support the deed.
I like this video but can't the lender of the Traditional loan call the loan if you decide to transfer title to an LLC?
For the 3rd scenario (institutional financing), do you need the Certificate of Good Standing from the state of Delaware or the state where the properties are located?
It depends on the lender or title. I recommend asking right away so you are not caught off guard before closing.
This is so interesting. I was told by a agent years ago you could create a LLC and have the LLC get a mortgage and finance a house. But this video says you can not do that.
Depends on the lender. If it is a portfolio lender you may be able to do what you were told but if it is a traditional freddie/fannie product - wont work on residential I.e., 4 units or less.
AMAZING! Freaking thank you
Could you go through
Zillow to find the house you want to use your llc for????
Yes that is a possibility.
@@ClintCoons after finding the house what's the next step
So informative!
Great video as always, I’ve enjoyed all of your videos. One question, isn’t it true that you lose anonymity when your creditor look at either mortgage or insurance paperwork?
Thank you, very helpful!
im curious, if i want to lease a property from an owner (home or apartment), is it best to do it under my name and then deed the property over to my llc that will manage it on air bnb? or is it better to buy a property?
I prefer to place the property in an LLC then lease it out of the LLC or create a leasing company to handle the business side of AirBnb. Here is a link to a video I cut on this strategy. ruclips.net/video/r5-_-_9CFIk/видео.html
Clint- I am buying w cash w LLC, how is title taken?
With traditional loan, does the bank let you deed your title to your LLC after you close in name ?
JD they do not permit it but many real estate investors transfer the property despite language in the loan agreement granting the bank the right to accelerate if they desirer the transfer. This is very uncommon but it is a consideration when moving encumbered real estate into a LLC.
Will swapping it to the LLC mess with the bank agreement?
It could violate a due on sale clause but this is rarely enforced. I have only seen it enforced 3 times in 20 years of practice. If the bank catches the transfer then you put the property back in your name.
@@ClintCoons This is a good question. If a portfolio lender will allow the mortgage under an LLC but it will be a higher rate and shorter term, why would I do it if I can do a residential loan and swap to an LLC later? Wouldn't the lender want to refinance now that you're an LLC?
@@TheGorlock Not sure. This depends on your lender. Freddie allows you to transfer real estate into an LLC without fear of acceleration.
When you deed the property over to your LLC the loan will still be on your credit report? Can you move the loan to be under the LLC, and not under your credit report?
Yes the credit will still report under your name. In my experience the lender will not move the loan.
Is traditional financing a conventional loan? You did not specify.... I am purchasing a townhouse under a conventional loan and they said that they wouldn't allow me to transfer it into an LLC!!!!
Correct they will say the loan is not assignable and a transfer will violate the acceleration clause. However, you can transfer your property. You are the legal owner and a lender can not stop you from transferring. If you deed the property and the lender discovers the transfer, the lender can call your loan due. This is an outlier and does not typically happen. Many investors will use land trusts to minimize the lender discovering the transfer. Have you viewed any of my land trust videos?
@@ClintCoons I have not looked at those videos yet, but I certainly will do that today. Thanks for your input on this, I have been stressing over this for a few days now. I am going back and forth with the idea of getting an LLC because I am hearing different sides to getting one (pros and cons). Knowledge is power though :)
Will the warranty deed transfer trigger the due at sale cause?
Yes it could but its is rarely exercised.
What is a warranty deed?
Is a Certificate of Good Standing required for a vehicle as well?
Depends on the lender.
So with traditional financing, on a separate video you mentioned that the transfer to the LLC would trigger the due on sale Clause but, in this video, you recommend transferring it after you purchase it in your own name? Which one??
Yes transferring it to a LLC does violate the "due on sale" clause but this does not necessarily imply the bank will accelerate the mortgage. The reason I state you will buy in your own name in this video is because the loan is for a residential property and lenders will often object to the taking of title in a LLC I.e., it makes the loan a commercial loan.
@@ClintCoons So how can someone get out of this to be sure an LLC is an option?
@@CreativeSoul333 I would suggest a strategy session. If you would like a FREE 30-minute consultation you can request one here
👉👉 aba.link/30minSession 👉aba.link/30minSession
Clinton - do you have an office in Pasadena Texas ?
We do not. Opening up in Austin at the end of summer.
This guy is fucking awesome
is it possible to transfer my financed properties from my personal name to my llc
Yes you may need to use a land trust to avoid any county or state transfer taxes.
What if it’s me and 2 friends that form an LLC? Can we get a loan through our LLC?
You could but it would need to be with a community or private lender (unless commercial) Typical broke will not offer a residential loan to an LLC.
Can you buy back taxes real estate taxes with your business name instead of your personal name?
Yes you can purchase tax liens with a business if that is what you are asking.
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JESUS CHRIST Bless You
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Get into real estate investing they said... just find a good deal and everything else falls into place they said. Oh but one more thing, be sure to start an LLC to protect your assets they said.. simple my ass..