after being a dba we are setting up a LLC finally; the next step is to transfer properties with warranty deed according to all experts on reiclub forums.
Now the questions:
How do you set that up ? do you just contact the title company? what are the cost of a transfer like that? How quick does this go?
Do the rental contrcats with tennants going to be changed (new name / entity)?
Might sound like simple questions but I just do not know the simple answers: pls let me know what you think.
i’m no expert on this as i have never done it…but…
if you are transferring title to something other than what is on the deed now - this may/will violate your DOSC - if you have mortgages.
secondly, think of it as a sale. one business (DBA) is selling properties to a seperate company (LLC).
if you were LLC and actually buying the properties from another entity, like Joe Smith DBA Joe Realty - would you want to have new leases and new everything in the name of LLC or in Joe Realty???
the answer is obvious.
think of the LLC as THE LLC. not your LLC, not an LLC - but THE LLC. if it could speak, it would tell you that if it is going to own the properties, that it must be in control of everything. no exceptions.
it also might tell you to, depending on how many properties we’re talking about - have THE OTHER LLC own a few of the properties…
then it might tell you to set up THE CORP that will manage the properties…maybe…depending on investment strategies.
you type up a warranty deed and file it at the courthouse.
you also assign/change lease agreements, etc.