Empowerment Quote(s) Day

"No plan of battle ever survives contact with the enemy."

--Helmuth von Moltke

Thanks Freedom for this.

So... I have this grandiose plan to fix our undercapitalized issues and then life stepped in. No matter. We can work around a tenant of five years moving out with no notice. We can work around lots of things.

Challenges are just opportunities in disguse, right? In fact, the people at the Waterford home told us they wanted to buy. What a break!

Except they have been bizarrely silent since we responded to their offer. Not even a "thank you for playing, now buzz off." Nothing. That's fine too. They stay, the house is rented. Eventually the prices will go back up. Thankfully, they aren't as low as I was anticipating.

Then, we looked at getting a mortgage refinanced to some rate around at an historic low. We were moving forward. I was ready to roll. Then Matt, the loan officer, broke the news to me this past week. Banks aren't loaning for refinancing for properties in the name of an LLC. The home has to be in the name of the lien holder (Marty Sunshine and I) for six months, before they will touch this.

I ask you, who the hell made up this rule?

A Limited Liability Corporation (LLC for short), in this case, it is a pass through entity which holds title to a property. The people on the LLC are the ones wholy responsible for the property. Like me. Like Mr. Partner. Essentially, this is how we put on Mr. and Mrs.s Partners' names on title.

And even though I can prove I own the home (as we are part of the LLC), or conversely, if it really is this big a deal, ask Mr. Partner to cough up his financials to get this covered as well (though Marty and I are capable on our own), the banks aren't playing. Apparently every bank.

Matt called me Friday to give me the news. He promised to check a few more places, but I am getting the overall impression it won't matter if he checks The First National Bank of Guido and Vinnie. We aren't getting a refinance. Right now.

This brings up an interesting scenario. Can I somehow convince Mr. Partner to allow these properties to be re-titled back into Marty's name? Thus, acting as if Mr. Partner isn't really a partner in the LLC? And if I do that, what kinds of liabilities do Marty and I take on (or what kinds of liabilities does Mr. Partner get out of).

The government bailed out the banks with our tax money, making it possible for the banks to do their job. But, the banks aren't lending--even to taxpayers with A+ credit. Oh, yay us.

Off to plan B, C and D.

"I have not yet begun to fight!"

--John Paul Jones