We often talk about the asset protection reasons for putting real estate inside an LLC. But there are a couple of practical issues that come up. Here are a couple of the questions we received at last Saturday’s FREE webinar.
Question: How do I get loan approved using my credit if the title will be in LLC. Loan company does not like this and said it would delay funding.
Question: Can I change home title from my name to an LLC without causing problems with bank?
If you’re looking for funding and running into trouble with your LLC, chances are you have an FHA loan. These are loans made to individuals. You may have to spend a little more time explaining that you will personally guarantee the note. Or you may instead get a higher interest rate.
It may seem like this is a hassle and costly. Is there a benefit? The answer is a resounding yes! Can you imagine how you’d feel if you didn’t protect your property with an LLC and you got sued? Not only would you risk losing the property itself, but all of your other properties, your bank accounts, child’s college funds, even the furniture if your house.
And if you think lawsuits don’t happen, think again. You have a 1 in 3 chance of being sued at some point in your lifetime. If you own something worth taking, your chance of being sued is even higher.