We first broke the news about Freddie Mac changing the rules on lending 3 months ago. At that time, we learned that effective 8/1/08 all refinance loans would require no change in title for the 6 months prior. Looking at that closer, that meant that if you had a property that was underwritten by Freddie Mac and you had it protected with an LLC, that you would no longer be able to refinance it. Consider that over 80% of all 1-4 family homes are underwritten by either Freddie Mac or Fannie Mae and you and a lot of investors have one more problem in today’s real estate market.
That left you with 3 choices: 1) never refinance (unpractical) 2) go bare with no asset protection (definitely not recommended) and 3) use a TrustSandwich(tm).
Fannie Mae has just announced that loans underwritten by this agency will have the same rules as Freddie Mac. Basically that means that EVERYONE who has real estate investments needs a TrustSandwich(tm).
We developed this innovative technique for holding property as a solution to protecting your assets while getting the maximum amount of flexibility for refinance. And along the way Megan Hughes (Business First Formations) discovered some advanced techniques that can reduce transfer tax and other state tax issues.
It all starts with the basics, though, learn about the TrustSandwich FIRST HAND from the people who developed it!