Investor · Fernandina Beach, FL · Member since 2012 · 95 posts · 14 votes
Team BP,
I acquired a property via foreclosure auction with cash in the name of my LLC. For a variety of reasons, not the least of which is access to financing, I have decided to move the property back into my personal name (well, my wife and I).
My plan is to have the title switched to my personal name when we record the mortgage with my financing company. I've already looked into it with them and they are agreeable to that arrangement which will save some recording fees. What I need to find out now is how should I handle my current tenants lease that is signed with my LLC? Can she continue to hold the lease thru the LLC, with me just doing a low-cost leaseback to the LLC in my name? Is there another way this should be handled?
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Assign the lease from the LLC to you and the wife. File the assignment, not the lease. Better would just to make a new lease. Need to do something as you could have host of issues. :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Assign the lease from the LLC to you and the wife. File the assignment, not the lease. Better would just to make a new lease. Need to do something as you could have host of issues. :)
Investor · Fernandina Beach, FL · Member since 2012 · 95 posts · 14 votes
12y
Bill - thanks for your help!
Dyou mean I should draft a lease assignment and file that with the county clerk, correct?
I may, unfortunately be simultaneously in the midst of my first eviction with this particular tenant, so I want to make sure I don't create any issues with the enforceability of their lease agreement. Not sure if you have additional insight for me on the viability of an assignment. I'm willing to contact a real estate attorney, but wanted to get your input.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
If you're about to have legal actions, don't do anything, eviction was one of the biggest issues I was referring to. Yes, I mean file the assignment of the lease, also convey title with a Special Warranty Deed (now that I think of it). See your attorney! If you're going to eviction, take care of that first, then transfer the property and you can just make a new lease agreement individually. Get insurance. Good luck. :)