Transfer of Property To LLC
Hello all,
I am attempting to transfer a rental property from my name to my LLC. I have been reading numerous articles and what I have discovered is to hire a title company to have them move the deed to my LLC. Is this best possible way to go about this situation?
Thank you!
Assuming you don't have a loan on it, yes, you can just deal directly with the title company of your choice and do a quit claim deed. If it has a loan on it, you will need to ensure that you don't have an issue with your bank. Some banks are fine with it as the loan will stay in your name and others don't allow a change in ownership without paying off the loan.
Pretty much.. its a quit claim deed.
However, how you read about how its not always necessarily to get a LLC? becareful with your next loan since you can't get conformign loans. Be careful about your corporate veil since the mortage (assuming you have one), is still in your name. Don't comingle your funds... where do you draft the mortgage payments? the list goes on..
But, if that's what you want to do, its just a quit claim deed...
Good luck.
When you transfer a property to an LLC from your own name in California it triggers a reassessment on the property tax and it gets increased to the new value. Could cost many thousands extra per year.
Hey Tim,
Thank you for this information. This was also my concern and to make sure this does not happen I contacted the Orange County Tax Assessor. It was relayed to me that as long the LLC is owned by the same name as the current title owner the property does not get reassessed. The tax assessor was contacted on 07-20-23.
Quote from @Daniel Serrano:
Hey Tim,
Thank you for this information. This was also my concern and to make sure this does not happen I contacted the Orange County Tax Assessor. It was relayed to me that as long the LLC is owned by the same name as the current title owner the property does not get reassessed. The tax assessor was contacted on 07-20-23.
You should be using recordmydocs.com out of Brea, they will do it. Usually about $300 per property. There should be no change in taxes, and also just give the mortgage company a heads up.
#1 All Forums Contributor
- Investor
- Northern Virginia
Quote from @Daniel Serrano:
Hello all,
I am attempting to transfer a rental property from my name to my LLC. I have been reading numerous articles and what I have discovered is to hire a title company to have them move the deed to my LLC. Is this best possible way to go about this situation?
Thank you!
Why are you doing this? That is the question you should first ask yourself. Transferring can cost thousands of dollars per year to make someone think they will sleep at night from "getting sued", but reality is get a property manager and an umbrella policy and that is better asset protection than a LLC. There are probably more cases of title claims no longer covered because of this than there are people getting personally sued.
Quote from @Chris Seveney:
Quote from @Daniel Serrano:
Hello all,
I am attempting to transfer a rental property from my name to my LLC. I have been reading numerous articles and what I have discovered is to hire a title company to have them move the deed to my LLC. Is this best possible way to go about this situation?
Thank you!
Why are you doing this? That is the question you should first ask yourself. Transferring can cost thousands of dollars per year to make someone think they will sleep at night from "getting sued", but reality is get a property manager and an umbrella policy and that is better asset protection than a LLC. There are probably more cases of title claims no longer covered because of this than there are people getting personally sued.
This is what I have heard too. Lawyers can usually poke holes in the LLC and get access to sue the actual person. I have a 5Mil commercial umbrella for all my properties and kept the properties in my own name. ALSO in CA be careful with having a LLCs because SB 567 will impose rent control on corporations and most LLCs. The only properties still not under rent control by the state are SFRs that are owned by a real person. Duplexes / ADUs and up are under state wide rent control and are also subject to newer tenant protection and strict eviction rules. Gotta love communism.
#5 Private Lending & Conventional Mortgage Advice Contributor
- Investor
- Scottsdale Austin Tuktoyaktuk
- 3,803
- Votes |
- 3,914
- Posts
#5 Private Lending & Conventional Mortgage Advice Contributor
- Investor
- Scottsdale Austin Tuktoyaktuk
Quote from @Daniel Serrano:As stated above, "Why are you doing this"? Sometimes it makes sense, sometimes it doesn't.
Hello all,
I am attempting to transfer a rental property from my name to my LLC. I have been reading numerous articles and what I have discovered is to hire a title company to have them move the deed to my LLC. Is this best possible way to go about this situation?
Thank you!
I suggest you Read:
Do You Need An LLC - It Gives Me Protection, Right? My Attorney / CPA Says That. . .
All my REIs are in an LLC! Why am I being personally sued?
https://www.biggerpockets.com/forums/926/topics/1097903-all-my-reis-are-in-an-llc-why-am-i-being-personally-sued
Quote from @Daniel Serrano:
Hello all,
I am attempting to transfer a rental property from my name to my LLC. I have been reading numerous articles and what I have discovered is to hire a title company to have them move the deed to my LLC. Is this best possible way to go about this situation?
Thank you!
I have lots to say around this concept, but to directly answer your question- yes, you typically use a quit claim deed. In my county you can just file one at the assessor's office for $20. Don't need a lawyer or title company.
Quote from @Mike Hern:
Quote from @Daniel Serrano:As stated above, "Why are you doing this"? Sometimes it makes sense, sometimes it doesn't.
Hello all,
I am attempting to transfer a rental property from my name to my LLC. I have been reading numerous articles and what I have discovered is to hire a title company to have them move the deed to my LLC. Is this best possible way to go about this situation?
Thank you!
I suggest you Read:Do You Need An LLC - It Gives Me Protection, Right? My Attorney / CPA Says That. . .
All my REIs are in an LLC! Why am I being personally sued?
https://www.biggerpockets.com/forums/926/topics/1097903-all-my-reis-are-in-an-llc-why-am-i-being-personally-sued
Great links!
#1 Managing Your Property Contributor
FNMA allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met.