Turning Home into LLC
If I can turn my current home into a LLC what are the pros and cons, and can i use a conventional loan again since I'm no longer the primary. I want to buy a new home and rent this one out is my aim.
Most Popular Reply
The only thing turning a home from your name into a LLC does is cost you more money. You have LLC fees, additional tax filings to have it be a pass through entity and all for what? Someone telling you that you need asset protection, but cannot tell you in what instance you could possibly be sued for that insurance would not cover you.
- Chris Seveney
I'm interested in this conversation from a different perspective. Turn my house (paid off) into an llc (where I do all my work from-real estate investment), buy a primary home with VA certificate.
@Daniel Mutek
You can't get conventional loans with an LLC. Plus any attorney can pierce it if they wanted to showing that you're behind your LLC. I'd buy your fist 10 with conventional loans then get an LLC to buy with after you tap out with 10 conventional loans. That's what I did. However, I did deed over 5 or 6 of my properties that were in my primary name to my LLC when I was a noob which was dumb. lol
The only thing turning a home from your name into a LLC does is cost you more money. You have LLC fees, additional tax filings to have it be a pass through entity and all for what? Someone telling you that you need asset protection, but cannot tell you in what instance you could possibly be sued for that insurance would not cover you.
- Chris Seveney
#1 Insurance Contributor
- Insurance Agent
- Norwalk, CT
Daniel,
If you do make the change to the LLC be sure to change your Insurance policy to the name of the LLC.