QUESTION - Best way to transfer & title property where I’d like to get a loan against the house in a few months.
Hoping for some help thinking through this strategy. A few years ago I was a victim of an extremely wrongful foreclosure. I bid at auction (for less than I owed) and won! They cancelled the sell when they saw my name. I rebid & won in my mom’s name. My mom desperately wants the house out of her name. But I’ve like being able to honestly answer “No” on certain applications that ask whether I own any property. At least one floor is used for airbnb.
Until I picked up The Tax & Legal Playbook I thought I would put the house in a trust.
Now I’m convinced the best route is an LLC. (Although I’m concerned about paying the transfer taxes I’d avoid if my mom just deeded it to me).
BUT, I want to take out a loan against the house in 4-6 months, certainly this year. I heard an underwriter’s attorney say it is all but impossible to get a loan on a property owned by an LLC. A suggestion was to put the property in a trust and have the trust “owned by” the LLC. It sounded as if the trust docs would be sent to the underwriter, but they’d never see the LLC docs. The attorney said that scenario, with proper trust docs, would’ve passed muster. He wouldn’t have known the trust was owned by an LLC. This sounds different than putting an LLC in a trust.
Is this a viable option? If not, what is? Lastly, won’t there be considerable taxes if my mom deeds the property to anyone but a family member?
Note: Property is worth less than $300K & has renter’s insurance. This is less about asset protection and more about keeping my name off the house if possible but of course ap is important too.