Can I deed a rental property that is currently in my name (but still owned by a lender) to my LLC that has no credit history? Or does it have to be “sold”?
Do you own the property or does the bank? Perhaps you mean the bank has a lien on a property that you own? If so you can transfer ownership of the property to your LLC with a warranty deed and treat it as a capital contribution. It does not have to be sold to your LLC. However, read your bank loan documents closely and look for an acceleration or due on sale clause should you transfer title to the property.
The bank still owns it. I will look for the “due on sale” clause. Thank you.
Another question: If I were to do this, would it help build credit in my LLC?
I’m confused. You say the bank still owns the property but you are asking if you can deed it to your LLC. Are you in the process of buying the property from the bank?
I’m just needing to know how I can get the property from my name into my LLC. Yes, the bank still owns it. I am not sure what the process is.
Use a Warranty Deed and deed it to the LLC.
Keith
Now that’s the answer I was looking for!
Thanks Keith.
Either the bank owns the property or you do – can’t be both. Whose name is on the deed?
If the bank’s name is on the deed as the titled owner, then you don’t own the property and can not retitle the property in the name of your trust.
Thanks Dave T, I couldn’t have asked it better myself.
Once again…the bank owns it. The confusion came when I added the part about it being in my name (the bank loan). That did not need to be added to the question. Sorry.
Then, if the bank owns the property, you can’t legally do anything with the deed.