Updated about 8 years ago on . Most recent reply
Title - LLC transfer
My business partner and I are buying a rental property (2bd/1ba) in Michigan. We’ve also formed an LLC in the same state. We’ve been preapproved for conventional financing. Because our LLC is new, we’re using personal financing.
When do we transfer the title to the LLC so that we protect the liability of our assets?
Thanks
Most Popular Reply
You have to read the note to know for sure, if there is an acceleration clause in the note for title transfers etc then you will be out of luck and they will call the note due and payable upon notice. Your best bet is to find a lender that will allow you to close in the entity (My company allows it, even a brand new LLC but only on investment and max Loan to Value is 75% so there are drawbacks). As @Matt K. explained, if you do anything to allow someone the opportunity to pierce the corporate veil you might as well leave it in your personal name!