Sell my personal duplex to my LLC with partners?

2 Replies

So, I own a duplex in my name only. I also own other rentals in my LLC with two unrelated partners. What does it take to "fold" (sell?) my individual duplex into the LLC?

Partners pay me 2/3 of equity and we do quit claim? Which could trigger due on sale clause? Our Attorney could write up paperwork. An actual sale, which would require title work and banks and such? I seller finance to LLC? Also could trigger due on sale clause and have closing costs.

Just starting my research so any info/ideas is appreciated. Looking for most inexpensive and easiest way to do this.

@Anthony Wick Depending on the value and what's worth it or not in terms of transfer taxes or re-assessed property taxes if you still want to make the move do it half in 2019 and half in 2020. This also depends on your local laws but usually if you remain the majority owner when you quitclaim to an LLC this should not trigger anything. Won't be simple on the numbers if you're trying to keep it even three ways which would mean have them both start with 16.67% now and the rest in January.

Also hopefully you're getting you numbers based on current value, not your base, and you can pre lock in the second buy-in option based on current value as well. Lastly, unless you really need the cash without many options you are better off doing a cash out refi if you can and then quit claim it to your own LLC to keep partners out of the mix.

@Brian Poirrier

All good things to consider. Definitely at current market values. Partners don't get a discount. Which means, I may just keep it and we (LLC) just buys other properties. Probably at about 85% LTV, so a straight up refinance not likely yet. And, the mortgage is at 3.75% on a 30 year fixed.