Posted on: 23rd Jun, 2008 06:10 pm
I have a property (duplex) and land that is ideal for more units to be built. I have formed an LLC with partners to build more units. I want the LLC to assume the mortgage and property in order to secure a loan and build more units.
Welcome Cslocum,
You mean to say that you have a mortgage on the duplex and you want it to be assumed by the LLC? do you want to take a new loan against the land and duplex for more units to be built? if you can explain in detail, it will be very helpful for me to suggest something better.
You mean to say that you have a mortgage on the duplex and you want it to be assumed by the LLC? do you want to take a new loan against the land and duplex for more units to be built? if you can explain in detail, it will be very helpful for me to suggest something better.
hi cslocum.
welcome to the forum.
as far as i know there should be a mortgage assumption clause on the mortgage document to be enabled for assuming the mortgage and in the sale process the buyer assumes the mortgage. so have you checked the mortgage documents? is there any such clause?
by the way even if there is no such clause in your mortgage document then the llc can at least refinance the mortgage. but you need to quitclaim to the property to the llc.
feel free to ask if you have any further questions.
best of luck,
larry
welcome to the forum.
as far as i know there should be a mortgage assumption clause on the mortgage document to be enabled for assuming the mortgage and in the sale process the buyer assumes the mortgage. so have you checked the mortgage documents? is there any such clause?
by the way even if there is no such clause in your mortgage document then the llc can at least refinance the mortgage. but you need to quitclaim to the property to the llc.
feel free to ask if you have any further questions.
best of luck,
larry
or you can create an llc for cheap online and sell the property to the llc (here in the states it only costs you as little as a dollar to sell a property) and then the llc has control of the property. Thats how a lot of investors get around loopholes while investing. I also invest and i have used that technique in the past. does that make sense? hope it helps.
How do you sell a home for $1 with a mortgage on it?
legally you cant if you go BY THE BOOK. with no mortgage it is much easier. But with a mortgage on it then you would have to assume the loan. like a post said i read earlier about the papers not letting you assume, well thats kind of like borrowing money from a friend, then your other buddy pays the friend you lent the money to back. is he giong to be mad you didnt pay or is he going to be happy hes paid back? ok.. from here you might want to contact a leanient real estate lawyer hopefully a friend that has investing experience. I create a seperate homeowners policy but not erase the original (yes its 2 policys but you are protected if anything should happen) and from there you get my jist. but really if your not comfortable bending the bar then dont try it. with no mortgage easy as pie, with mortgage not as easy but can be done with a creative type of llc purchase... i cant elaborate more than that sorry, but talk to some investors im sure youll understand and they will elaborate more than i in the post.... good luck
Adonis
Yes I have a mortgage on the duplex and the land. I now have two partners and we have formed an LLC. I want to transfer the mortgage out of my name to the LLC. I want to then get a business loan to build 4 more units All under the LLC. Should i get one loan or two. Iam afraid too get a loan and build on the land if i dont have clear title help
Yes I have a mortgage on the duplex and the land. I now have two partners and we have formed an LLC. I want to transfer the mortgage out of my name to the LLC. I want to then get a business loan to build 4 more units All under the LLC. Should i get one loan or two. Iam afraid too get a loan and build on the land if i dont have clear title help
Hi cslocum.
Welcome back.
You already have a loan against the property. So I don't think you can get a loan using this property as collaterals. For even businesses loan you need some that you can use as collateral.
Best of luck,
Larry
Welcome back.
You already have a loan against the property. So I don't think you can get a loan using this property as collaterals. For even businesses loan you need some that you can use as collateral.
Best of luck,
Larry
Question: How do I transfer the Rental Prop to LLC?
Can I lease it to LLC for $1 instead of transfering?
Then, have my tenant make payment to LLC instead?
Can I lease it to LLC for $1 instead of transfering?
Then, have my tenant make payment to LLC instead?
Question: How do I transfer the Rental Prop to LLC?
Can I lease it to LLC for $1 instead of transfering?
Then, have my tenant make payment to LLC instead?
Can I lease it to LLC for $1 instead of transfering?
Then, have my tenant make payment to LLC instead?