I believe questions similar to mine have been posted previously, but I wanted to submit my questions too for clarification.
I live in Colorado, and I purchased a new house in Georgia. I purchased the property using my personal name on all the documents–the mortgage is in my personal name, the deed is in my personal name, etc. I have tenants renting the house from me and I have a property management company managing things for me.
I now believe I want to own this investment property with a LLC, not my personal person.
So, my questions…
– Can I quit claim this property from me to a LLC?
– How can I prevent a due on sale clause from being activated?
– Should I just quit claim it and hope the mortgage companies don’t active any due on sale clauses?
– Should I try to work with my mortgage servicing companies to change my mortgages over to the LLC? Or, will this just raise suspicion by the mortgage companies?
– Should I change my lease to reflect that the tenants are renting from the LLC?
– Should I change my dealings with the property management company to the LLC?
Just use a standard deed. Quit claims are not much good any more, title companies do not like to issue title polices is one problem with them as well. You could do a deed without warranty but really no need, just a standard deed will do.
Some advise using a trust to hold title to skate around the due on sale and some just say do it along with me. There are no due on sale police. I would not bother the mortgage company, some will let you but most will not. Several times I just informed the mortgage company that LLC was the new management company. It does not matter much as you are still personally liable for the loan. If you build up excellent credit in a LLC one day you may be able to borrow and not personally be liable.
Tenants hate changes. Try to avoid changing until you change tenants. This is up to your personal and actually the leases should be between the management company and the tenant.
Signing a new contract with the management company would probably be better.
No need to have the LLC in Georgia, any state will do.