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Moderator
    08/03/08 at 06:59 PM
 Reply with quote#1

I live in Texas and wish to purchase a rental property, with title to be held by my brand new LLC. I can get a very competitive mortgage rate in my own name, but none of the lenders will let the LLC hold title to the property at closing.

However, one bank and one mortgage broker suggested that I take out the mortgage and title in my own name, and then after 30 days, EITHER transfer title to my LLC OR make out a quit claim deed to my LLC.

Q1. Is this good advice? Please discuss both options. (I am aware that its expensive to transfer title).

Q2 Is there any way to ensure that the mortgage seller isn't just giving me a line? Given that most lenders would NOT let me transfer title after closing, I wonder whether it really is okay with the lending institution. I don't want my loan to get called in!
attorney
    08/03/08 at 07:04 PM
 Reply with quote#2

Q1. It is common practice to purchase a home in your individual name and to transfer title to an LLC after closing. In this area it costs nothing to transfer title except a few dollars in recording fees, but some counties and states have transfer taxes and other fees that can make it pricey.

Q2. So long as you pay your mortgage on time banks will not know/care that title was transferred.
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