» How Investors with Properties in LLC’s Can Deal with Freddie Mac Changes » Posted by Realestator
A couple of days ago it was reported that Freddie Mac will not refinance a property that has been held in an LLC at any time in the previous 6 months. Fannie Mae is expected to follow suit. And of course, this may require your lender to do the same. While it’s frustrating for those of us who invest in a responsible manner and in no way caused this mortgage debacle, we are now having to sit back and accept policy from a government backed organization that basically paints all of us with the same brush.
However, don’t panic. All real estate investors have some options. They are:
- Unless you have an ARM that really needs to be refinanced, you can leave the property where it is. The LLC will continue to give you the benefits you expected when you set it up. Stay with the same mortgage until you sell the property.
- You can pull the property out of the LLC seven months before you set out to refinance it, and put the property back in after the refinance is complete. Yes, you will have liability exposure during those seven months, so make sure your insurance is paid up and get an umbrella policy.
- You can find a lender who is willing to refinance the property inside an LLC and pay the higher interest rate.
- You can move the property from your LLC to a trust, with the beneficial interest in the trust held by your LLC.
Any of these options will allow you to accomplish your goal of Refinancing a Property that you currently hold in an LLC. And in Real Estate Investing, knowing what your options are is half the battle.
For more real estate investing information, visit the realestator’s website at www.real-estate-investing-support.com
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