Buying the LLC instead of the property?

[Yannes Chiang]

Hi,

We are investors from California and are looking an opportunity in Philly UPENN area and the seller offers to sell the LLC which was established to hold the title of the property or the property only. It is a newly built 5-unit apartment. Four partners in that LLC. If we don't wanna take their LLC. It's okay for them. They will just dissolve the LLC.

We will have to have a LLC to hold title of the subject property eventually. Buying their LLC sounds cost saving to both parties. I haven't discussed with any attorney yet, but there must be some disadvantages.

Here to reach out to you to hear your thoughts about the pros and cons. And any referral on good real estate attorney in Philly area?

Thank you very much for your precious time in reading this post

[Jimmy O'Connor]

@Greg Dickerson unfortunately Philadelphia is a real stickler for transfer tax so regardless if the property was purchased in an LLC or personal, you are paying a minimum of 4% split between seller and buyer