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That is a great question and I am sure you will get many great answers.
Just to make sure I understand the question (before I put my foot someplace).
You HAVE an LLC that has been registered with a Federal I D Number??
You have PERSONALLY secured the mortgages and lines of credit.
Do you have A LAWYER?? Talk to him about legally transfer the mortgages to the LLC.
Good luck, LUCKIEST
Yes, the LLC has been registered and we do have an EIN. What we have been doing is paying cash for the properties and then getting HELOCs to cash out and rehab. We want to do he same under the business. Any thoughts?
Thanks for the info. Do you have a Lawyer?? You know of the Risks of a HELOC?? Right
h1. _*The Risks of a
*The major disadvantage of the HELOC is its
exposure to interest rate risk. All HELOCs are adjustable rate mortgages (ARMs),
but they are much riskier than standard ARMs. Changes in the market impact a
HELOC very quickly. Standard ARMs, in
contrast, are available with initial fixed-rate periods as long as 10 years.* *HELOC rates are tied to the prime rate, which
some argue is more stable than the indexes used by standard ARMs. However, in the last three years it changed 17 times.*
While HELOC's work, they are not the best choice. Using commercial credit, will keep your personal credit report free of these loans. Look to your community banks, generally one or two branch banks fit the profile and they will have specialized renovation lending departments. They will lend both your aquisition and renovation costs with a 12 month commercial mortgage.
Commercial lending on real-estate is in the pits - litterally. The benefit of a Heloc is you can pay it down and re-borrow as necesary with minimal/no fees and the interest is tax deductable for the most part. Heloc is looking better and better every day with interest rates going back down as well. Just make sure your heloc allows you to lock in if need be.
Personally i don't like borrowing against my assets up to full value so my heloc is rather small and used for emergencies now.