Buying a Home through LLC

Buying a Home through LLC

Member since 2020 · 4 posts · 0 votes

Is it possible to buy a home under your name and transfer it to an LLC without triggering the "due-on-sale" clause? Would something like this be worth considering or is it better to just buy through the LLC from the start?

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  • Brian BoydPro Member
    USA · Member since 2019 · 305 posts · 536 votes
    5y

    You can purchase the property in your individual name and quit claim it at closing to your LLC as long as you personally guarantee the note. We have done this multiple times.

  • Member since 2020 · 4 posts · 0 votes
    5y

    Fantastic, thank you Brian

  • Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @Matt Abramo

    That may handle your Due on Sale issue. But, have you spoken to a qualified professional about your LLC's corporate veil? Also, how will that actually help with the LLC providing limited liability protection? You are effectively mixing personal and LLC activities in my layman's opinion. While lots of investors do this sort of "mixing," its never been shown that its a good practice.


    Good luck.

  • Member since 2020 · 4 posts · 0 votes
    5y

    @David M.

    That’s a good point David, will have to look more into it. Definitely don’t want to pierce the veil.

    Thank you

  • Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y
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