Hello BP community! I have a rental property that is owned through my partnership LLC (my wife and I each own 50% of the LLC). I have interest in selling the property if I find someone that want to purchase a rental property with a solid tenant and good cashflow. Is it possible to sell the ownership in the LLC, instead of selling the property itself?
The rental property owned by the LLC is a good performer...market value of about $300K and generates NOI of $20K annually. In a great neighborhood, with a solid, long-term tenant who has expressed interest in staying for a long time.
This would avoid all the normal transactions costs of selling a property. Instead, I could sell 100% of the ownership in the LLC and simply have the purchaser takeover control of the LLC.
There is no debt on the property. Good question for sure.
And I think I would be limited to selling to someone that could pay cash or had alternative financing besides agency debt probably because they would be buying the ownership in the LLC that has title to the property. Not sure though.