I'm a fan of Diane Kennedy for many reasons. Bottom line, she's an accomplished CPA and author worth listening to. The reason for this post is that the secondary mortgage market is making some significant changes.
If you own a property that has been in an LLC in the last 6 months, you might not be able to refinance it. Ever. This of course could throw some significant kinks into your investment plan. Some of it's over my head. I'm not a CPA mind you. But there are new ways to maintain liability protection while retaining your freedom to refi as appropriate for your needs.
I personally plan to contact Diane about her "Trust Sandwich" tactic. It's really not as funny as it sounds. It's simply an implementation of trusts coordinated with your existing LLC that enables you to keep many of the same benefits you enjoy now, along with some additional estate planning and other bonuses you may like. Anyone holding property in an LLC, I recommend addressing this concern. I am. Currently I am not aware of anyone competently arranging the legal structures for this specific issue, for the simple reason that these changes have only happened in the last few weeks. Diane Kennedy's company saw this coming and has a solution up and running. If there are other ways to address this problem that come to my attention I will make sure you know about them.
It's noteworthy that I am not affiliated with Diane's company in any way. She wouldn't know me from Adam. I'm sharing the information because it's pretty important to the majority of property investors out there.
Mario Trejo Romero
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