Re: another insurance ? - Landlord Forum thread

Re: another insurance ? by Nicole (PA) on May 19, 2012 @14:24

it's been quite a few years since I purchased anything but I believe the general theory was since "my" personal funds paid for the down payments and I personally hold the mortgages, the LLC doesn't stand on it's own and a good attorney will be able to "pierce" it's validity.

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Re: another insurance ? by Greg on May 19, 2012 @21:16	[ Reply ]

Talk to another lawyer. Putting your properties in to a LLC will not cause the mortgage holder to call your loan. Not having yourself protected by a trust or corporation is like playing Russian roulette. Feel free to ask anyone on this forum and check out any bookstore. Do the research. It's cheap peace of mind. Best of luck, Greg in Phoenix

Re: another insurance ? by Doug on May 25, 2012 @08:19	[ Reply ]

That doesn't sound right to me. That would invalidate the purpose of an LLC. Also, I had a C Corp and an LLC and was allowed to fund their operation for quite some time with personal funds without invalidating the corporation. LLC laws vary from state to state, and checking with an attorney on how to avoid the scenario shouldn't cost all that much. Even if you have to have the LLC hold on to some of it's "shares" and buy them periodically from the LLC, or something. I'm sure there's a way to do it. And yes I've seen many properties in an LLC with a mortgage. Here a quick claim deed is used to transfer title to the LLC and the mortgage is still intact. Again, check with the attorney on how to do that. It's worth a few dollars to get the right advice.