Updated about 6 years ago on . Most recent reply
First Investment Property - LLC Related Questions
I am currently working on acquiring my first investment property in (TN) and will be getting into contract soon. Furthermore, I am also looking to create the LLC for my first investment property (for Asset Protection and Tax related purposes). I plan on getting this process done this coming up week. I recently spoke to my lender (Bank) and I was informed that they won't allow me to go through the mortgage process with an LLC. Due to this situation, I was also told that closing of the property (Title/Deed) will need to be under my name as well; not the LLC. Because of this noticed, I have several questions which I hope someone can provide some insight!!
1. Is it still worth it to create an LLC at this point? If so, should I create the LLC as to where the investment property resides or would it be ok for me to create an LLC in another state such as Arizona since they have low filing fee and no annual fee? (Note that the investment property is not located in Arizona)
2. Is it worth it to go through the process of transferring the Deed from my name to the LLC after closing? (What are the Cons and Pros?)
3. If I were to transfer the Deed from my name to the LLC, how would my mortgage be affected? In addition, can I also transfer the mortgage under the LLC?
Thank you for your help BP Community!