Good Day Investors ,
So finally after my 3rd Property - I did dive into opening an LLC. I know the next thing would be to do a QuitClaim to transfer the investment properties to the LLC.
Q1. When I do a Quitclaim - the state would show the LLC while the title would be on my name - does that cause an issue ?
Q2. Should I be doing a Warrant deed instead ?
Confused on them - and there are conflicting articles on the web on both.
Q3. As for the LLC - do you recommend what kinda Insurances should I be taking ? Liability etc ? and amounts ?
As always thanks for taking the time and responding.
@Account Closed - thanks John - Good point. I checked on that with BOA - and they are good with that. As they have me personally on the hook :). My issues was more on the City having LLC name v/s Title my name confusion.
@Ketan Parekh , you file the LLC with the state as any and every business does. This creates a legal entity that acts like a bucket you can put things in. When you sign a quit claim deed or warranty deed you convey or transfer ownership in the property from your personal name into the LLC. When this transfer deed is recorded at the county, the new owner of record will be the LLC and the chain of title will show you transferred from your personal name to the LLC.
This is done to help create some privacy and certainly asset protection.
Hopefully this helps clear up the confusion regarding how things are named, where they are recorded for the public to see and how title/ownership is transferred.
@Cody Backus - very valuable info. Thanks a lot. This clears my understanding.