We have a triplex we purchased in our name that we now want to put into our LLC. I have been looking at legal document forms available for both “Warranty Deed to Corporation” and “Quitclaim Deed to a Corporation”. Which, if any, applies? It was also suggested to use a HUD-1 form…can’t find it on any web site so far–and what, exactly, is that?
Thanks in advance.
“Land Trust” with the LLC as beneficiary. Quick, easy , and effective.
Just following LeGrand’s Cash Flow Systems.
Thanks for the reply–However, from reading I know Land Trust to an LLC is the best way to go. The problem here, however, is that the property is already purchased in our names–we have to TRANSFER that out of our names on the title with both our mortgage company and the county records.
Land Trusts seem to be an elusive concept in Dallas. No real estate attorney we know can tell us anything about it. There are no forms available on web-sites related to real estate or law (UNLESS ONE WANTS TO PURCHASE AN ENTIRE COURSE FOR $ 800-1000). Frankly, our attorney is less than that.
Even if we could find the form on-line, the question remains on how exactly to go about getting the property we already own in our names off the pertinent records and into the Land trust. (It’s much easier to buy it in the Trusts name, but unfortunately we did not).
Our LLC is already formed–we had apartments in it that have been sold, so we can put this property there now.
Don’t know who LeGrand is–been reading Bronchik–but not convinced we need his entire package when Our LLC is already in place. Just need someone who has done this to tell us SPECIFICALLY what they did–which forms, ETC. A transaction such as this can also trigger the “due on sale” clause of our mortgage–we plan to call them to see what they suggest.
We will also be contacting our CPA, as another suggestion came in to use a HUD-1 form, but to check with our CPA to see what documents he prefers.
Any more specific info you may have pertaining to this is greatly appreciated.
Thanks
Ed,
You won’t be able to remove your names from the loans, but you can transfer/sell title to the LLC/Land Trust. In my counties filing a deed costs about $11. For tax purposes it is a sale, but it goes across at basis so there’s no real effect.
Putting these properties into a trust will not trigger the DOS. For this transaction it would be wise to get help, but once you’ve done a few, you won’t need assistance.
All that is required is a HUD-1 to evidence the sale for tax purposes and a deed. And Bronchick’s LLC course is well worth the cost.
You can get a copy of the HUD-1 here…
http://www.texasrealestateclub.com/links/forms.html
If you don’t want to go to the trouble of figuring out the land trust, which is actually no biggie at all, then just sell the properties directly to the LLC.
Hope that helps some…
Thanks Tim,
That sure does help.
Question: When referring to the Deed–Warranty Deed, Quitclaim Deed, or a simple Deed of Sale?
Thanks for the link to the HUD-1 form.
We will do this transaction with the help of our CPA, as you’ve suggested.
Hopefully, there won’t be an ongoing need for such transactions as all future property purchases will be done out of name…!
Your assistance is greatly appreciated.
EW,
If you’re just going from you to your LLC, a warranty deed should be fine, but double-check with your title company or closing attorney. In the Austin area the title companies almost won’t recognize a quitclaim as it’s basically worthless.