Posted on: 22nd Mar, 2009 11:03 am
can i transfer one of my homes and its liability to my llc thru the novation process?
the rent i receive on this property would put my llc in a positive monthly cash flow situation. this process would free up my debt to income so that i could purchase another home.
my plan is, thru this process, to have three homes under the llc within 7 years. with home prices low and inventory high i can rent certain properties for a couple hundred over the mortgage. the proforma is positive but lenders do not often lend to businesses. any suggestions?
the rent i receive on this property would put my llc in a positive monthly cash flow situation. this process would free up my debt to income so that i could purchase another home.
my plan is, thru this process, to have three homes under the llc within 7 years. with home prices low and inventory high i can rent certain properties for a couple hundred over the mortgage. the proforma is positive but lenders do not often lend to businesses. any suggestions?
Hi Helgetjj,
The idea sounds good. But you need to first sign a quitclaim deed to transfer the home to the LLC. As far as the novation process is concerned, it is subject to the lender's approval. Thus, you need to discuss the matter with your lender.
Thanks,
Jerry
The idea sounds good. But you need to first sign a quitclaim deed to transfer the home to the LLC. As far as the novation process is concerned, it is subject to the lender's approval. Thus, you need to discuss the matter with your lender.
Thanks,
Jerry