Buying a rental property - title question

[Gulshan D.]

I am looking at a property near Chicago and plan on closing very soon. I have a question regarding the title for the property. Should I close the title on my name or would it be a good idea to open an LLC or trust and have the title under them. What would be the pros and cons of having the title under LLC vs trust vs individual. Any insight is highly appreciated.

[Randall Alan]

Quote from @Gulshan D.:

I am looking at a property near Chicago and plan on closing very soon. I have a question regarding the title for the property. Should I close the title on my name or would it be a good idea to open an LLC or trust and have the title under them. What would be the pros and cons of having the title under LLC vs trust vs individual. Any insight is highly appreciated.

The LLC gives you better asset protection - but you can't use a residential loan to borrow in the name of the LLC. So you would have to get a commercial loan if going straight to the LLC - which usually has worse terms (shorter rate lock period, shorter amortization schedule).

USUALLY, you can borrow personally and then deed it to the LLC after the fact and as long as the LLC is owned by the borrower you won't trigger a due on sales clause.

You will probably pay transfer taxes to do this though. 

All the best!

Randy