Buy property in own name or LLC

[Ian W.]

I'll be buying it with cash as an intended rental. 

Fixing up, then will get mortgage on it. 

After the mortgage, is that when I deed it over to the LLC name?

Best rates for the mortgage and most options will usually come when it's in your personal name rather than an LLC with no history correct?

I know there are small banks that will lend to the LLC, but afaik it's a lot more difficult to find them and less options out there.

What is the ideal way to do this? 

[Tyler Gibson]

@Ian W. if you plan to refi then do it all in your own name. Unless you have a large net worth it is not really necessary to put the property in an LLC. The only advantage of the LLC is asset protection but you can usually do the same thing with an umbrella insurance policy. If the loan you get on the property has a due on Sale clause then technically you cannot quite claim deed it to the LLC after getting the mortgage without potentially triggering the due on sale clause. If you ask your lender about transferring to an LLC after getting the MTG they will likely tell you it is a big no no. It can be done there may be a risk of the balance of the loan being called due. It may be a headache come tax time. It might not be needed. Everyone has a unique situation so you might need to put it in an LLC but I believe there is a lot of talk about putting properties in an LLC on the podcasts and so people think it is just what you need to do. But that might not be the case. The people that need to, have 10-20 or more properties and can no longer protect their assets with an umbrella policy. You might want to do some more research.