I am a newbie and I am hoping to get advice. In order to get the mortgage on my second out of state turnkey property, I had to buy it in my name. I just set up an LLC with Incorp. and now I was told to just quitclaim deed the property into the name of the LLC? I don't know if I need a lawyer to do that or not? I don't have a clue how to do it myself. I also want to know if it makes sense to have my accountant or else a lawyer or else both check to see if my LLC is set up the right way? Or would Bigger Pockets be the place to research to see if my LLC was set up the right way. I understand that I will need to have the insurance policy and the property management agreement changed to reflect ownership being the LLC. By the way I am in Massachusetts if that matters?
Hi @Maryann Lacey , you could certainly research what other investors are doing here on BP but I think your best bet is to talk to a lawyer about what you would like to do.
When it comes to LLCs, trusts, etc I like to let Lawyers do there thing...I know there overpaid but its worth it having the piece of mind knowing it was done correctly for you.
@Maryann Lacey Welcome.
If you take any advice from here on BP and something goes wrong, who ya gonna call, Brandon (co-founder)?
Local Attorney who does Real Estate would be best. (and pay them!)
My bet is that you'll be better off leaving the deed as it is, you'll have a foreign corporation being out of state. If you are forming an LLC for liability issues, insurance and management are more than enough, this has been kicked around a lot on BP.
Another note, RE issues and title issues change, in recent years and even months, title concerns with quit claims are arising as to quit claims breaking or hinder title searches and coverage. Use a Special Warranty deed for transfers to your entity, your warranty in title helps keep your title coverage in force for you, but not your entity.
Newbies starting LLCs is way over rated, start a business entity for business reasons, not as a liability front, good management and insurance takes care of that. Your property manager is also insured and you have recourse against them should they fail, so ensure they are properly insured/bonded. :)
Definitely talk to experts. Doing this needs to be structured just right or it could cause problems. And watch out for triggering the due-on-sale clause!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.