Hello,
I purchased an investment property with a personal mortgage loan. I have a LLC and would like to transfer the investment property into the LLC. Is this something I can do myself or should I have my attorney take care of it? I understand some banks can call the mortgage in if you transfer the title over to a LLC. Can someone who have done this shared their experience of how it is done? The good, the bad? Thank you.
Hi,
Yes you can transfer the deed into an LLC. Your lender recognizes your signed on the loan and if say you and your wife file the LLC they can see your name in the Secretary of States office.
Now when you have an LLC you will need to have the property permissions written in the Operating Agreement allowing the LLC to take ownership of a real property. It’s probable better to have a service that prepares corporate entities and documents and have them initially set up your LLC if you want one. They can be done in most states for between $400 and $1,000 dollars.
Now your landlord / tenant insurance will be more expensive and depending on where you are the fact your operating a corporate entity as an LLC may prompt you to seek liability insurance, officers and directors, errors and omissions, etc.
If you just have one or two properties much easier to leave them in your name and get a good landlord tenant policy!
GR
setting up the LLC is a no-brainer and anyone with the internet can do it for a little time and the filing fees.
having a good operating agreement is the key. you need to have one drafted by an atty in the state you will operate in.