Transfer Title or Purchase As LLC?

[Matthew Meikle]

Hey all. I'm making plans for my first purchase of a plex for cash and was hoping I could get some advice. It's going to be a buy and hold rental. I would like to place the property into an LLC. I plan to do this for each property individually that I buy in the future. (Example: 123 Main St, LLC) My question is, do I need to have the LLC established prior to purchase and make the purchase in it's name or can I later transfer from my possession into the LLC after closing?

I know I should seek professional advice tailored to my personal situation and location, but any point in the right direction would be greatly appreciated.

Thank you kindly.

Matthew Meikle

[Valery Vargas]

Hello Matthew,

From my experience, you usually create the LLC prior to closing so the title can go in the LLC instead of your name. You can certainly do it afterwards but there are additional costs to do that and in some cases you can trigger your mortgage (if you have one) to be due before completing the transfer.

I also believe when you purchase with LLC financing is a little different. I'm new to BP but figure some of this info could help!