I am interested in selling (transferring) my personal solely owned rental property to my partnership LLC

the goal is to free up the equity without incurring unnecessary cost. (closing cost)

@Scott Pennington If you hold title to the property, it should cost you filing fees to quitcliam the deed from your name to the LLC.

Do you plan on drawing up some sort of loan from you to your LLC in order to pay back yourself back?

thanks Bill for the reply first timer..

not sure how the loan will work out because my partner owns 50% of the houses already in the LLC

the two house i want to transfer into the llc i own out right. 

will my partner need to get a loan to purchase half the house?

@Scott Pennington just FYI there are potential tax complexities here if you are contributing appreciated property into a partnership. Be sure to consult with a CPA.

@Scott Pennington

You mention the term "selling" but it seems like you want to say transfer/contribute.

These are 2 different approaches that will have different results.

Regardless - if you change the title - you should expect to pay some fees to a title company and possible some transfer taxes depending on county.

This is simple. A title company can transfer property using a quitclaim deed. You just transfer ownership from your own name to the name of an LLC. Easy. But there will be some minimal costs and fees from the escrow company and the county to do so.

@Scott Pennington

Doing this won't free up any equity.

The underlying payment obligation will still be yours.

it seems i will need to sell half the value of the houses to my partner and the money will have to come from outside the LLC partnership.

I am selling my solely owned rental property that has a mortgage to my 50% owned LLC

will my partner assume the debt or need to get financing on his own?

@Scott Pennington   Do you hold title to all of the property/properties free of any liens? 

If you own the properties free and clear transferring them won't free up any equity for you. Think about you and your LLC like different people entirely. Since you own 50% of the LLC but 100% of the properties transferring them to the LLC causes you to lose half of the value of the properties. If you don't want to give away 50% the value of your homes, the LLC will somehow need to pay for it. The LLC can do that in three ways: Debt, Equity, or Cash. If the LLC has the cash to pay for the homes that is the simplest. Your partner could inject money into the LLC in the form of an equity injection. The LLC could use a Line of Credit or you could do seller financing to the LLC and get paid back over time.

If one of the homes has a mortgage on it, you can't deed it over to an LLC that has another partner. The bank made a loan to you, not your LLC. At he very least it will violate the Due on Sale Clause.

@Tom Gimer is a better person to ask about the warranty deed vs non-warranty deed transfer for this situation. 

If I was you I'd go to a Real Estate Attorney and a CPA to get some guidance before making decisions.

Thanks guys for the replies, should I sell my rental to pay off CC debt or get a equity loan and have the tenants pay off loan