Move deal into LLC after purchase?

9 Replies

Hi BP, I have filed for an LLC but it is still being processed by the state. There is a deal that I want to put an offer on and I don't want to miss it. Can I put in an offer and purchase the property in my own name, then somehow move it into an LLC for tax and liability purposes?

Thanks,
Tom

By transferring it to your LLC if the mortgage is in your name is could go against the Due on Sale clause. With that being said some lenders will lend to an LLC without a problem, but if I was you I would talk with your lender to see if they would have a problem with that. Also, it may not be a bad idea to own the property in your own name if you are already heavily leveraged. It all really depends on the specific situation you are in. Otherwise if your lender doesn't have a problem, you could draft up an amendment (or similar form) to assign the OTP to your LLC, if it is established before closing. If you have questions I can elaborate more

Tom, could you put the property into a land trust upon purchase and then list your LLC as Beneficiary?

I'm having a similar conundrum.  I've been told by my lender that Fannie Mae does not allow conventional lenders to give a mortgage loan to companies; it has to be closed as an individual.

However, what @Christopher Meis said might be an option for me as well as for @Tom MacDonald . I will talk to my lender and see if there would be any problem putting the property into a land trust and naming the LLC as beneficiary.

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There are also insurance (title and hazard) matters to consider.  The policy holder will be different than the property owner with an after-the-fact transfer.

I would offer as @Tom MacDonald or xxxx LLC for now. You can remove one as you obtain more info.

Is this property in the states?  What type?  A house? Commercial property is an entirely different animal.

Proper answers to this question completely depend on asset type and location.  Who knows what the laws are in a different country.

Originally posted by @Carter Crowley :

By transferring it to your LLC if the mortgage is in your name is could go against the Due on Sale clause. With that being said some lenders will lend to an LLC without a problem, but if I was you I would talk with your lender to see if they would have a problem with that. Also, it may not be a bad idea to own the property in your own name if you are already heavily leveraged. It all really depends on the specific situation you are in. Otherwise if your lender doesn't have a problem, you could draft up an amendment (or similar form) to assign the OTP to your LLC, if it is established before closing. If you have questions I can elaborate more

 Good info, thanks Carter.

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