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Tax, SDIRAs & Cost Segregation

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Joe Rinella
Pro Member
  • Waltham, MA
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Buy a rental property and transfer to LLC?

Joe Rinella
Pro Member
  • Waltham, MA
Posted Aug 2 2015, 13:49

Hi everyone,

I'm considering putting an offer on a 4 unit rental property. This will be my first real estate investment if it goes through. I don't want to live in it so I'm going to do 25% downpayment. I want to open an LLC and have the LLC own the property to protect my personal assets. Should I buy the property under my name, then open an LLC and transfer the property into the LLC? Or should I wait until I have the LLC opened, and then purchase it with the LLC? I just don't want to miss out on a deal and also I'm not sure what types of loans I would get under the LLC. Would I be looking at additional costs to transfer ownership to the LLC?

Also if I transfer ownership to the LLC, should I refinance the mortgage so it is under the LLC? I'm wondering if I would have personal liability in court if the mortgage is under my name, or if I would just be seen as an equity investor in the LLC, and the only thing at risk would be the property that the LLC owns.

Thanks in advance for any advice.

-Joe

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