Assigning a property to an LLC

[Stephen Mendoza]

My business partner and I recently purchased a property in our names. We would like to assign the property to an LLC where we are the only two members. In the bank note, it says if we assign the property without the lenders permission that the bank could call the note. Any advice on how to get the property into the LLC?

[Account Closed]

Originally posted by "RECPATAXMAN":

Contact your bank. You should have no problem retitling your property under your LLC's name and reissueing the loan under the LLC as well with a guarantee signed by you and your partner to the bank.

Probably get away with about $750 in fees with the Lawyer and bank fees.

The attorney will do a retitling so that will save you money instead of a full closing.

Joe

Joe,

I doubt very much that the lender will be OK issuing a new loan or otherwise taking the borrowers off the present loan. The lender might be fine for the property to be put in the LLC while the loan remains in the two individual names.

Any lender that would agree to what you are suggesting is a lender that would be fine issuing a loan to an LLC in the first place. A few exist but not enough to make it interesting for most investors.

John Corey