Properties to an LLC

General Real Estate Investing
1

Asking for a friend, this is way out of my realm. He wants to know how to put his rental prop’s in an existing LLC. Do-it-yourself style even if its not recommended. How about Dave T. or others. Thank You, Herbster

2

warranty deed.

3

special warranty deed.

4

Thank You All, My friend made it sound difficult so I needed to be told so. That’s easy, Thank You again, Herbster

5

It isn’t hard to fill out the deed. It is hard to know what type of deed to use for a given situation, or if the properties should even be transferred at all.

6

Two other items to consider:

  1. Make sure that you talk to your insurers. The LLC needs to be a named insured or an additional insured, as do you (some LLC insurance contracts insure the owner w/o naming him). If a trust is involved it should be insured as well.

  2. We generally send the bank a letter, certified mail, return receipt to let the bank know that Due-on-Sale is an issue. We have a letter that we give clients for this purpose. The idea is to protect against “Deceptive Business Practices” claims AND provide a waiver argument if the banks DO go looking for an excuse to force a refi in the future (when rates are high, for example). Have yet to run into a problem with this approach. I’m sure someone will, somewhere, but the odds of that are quite small in my experience.