Transfer my Properties into my LLC

4 Replies

When I was applying for financing I used a Mortgage Broker. I knew at that point I was going to transfer the properties into my LLC. My Mortgage Broker said that would not be a problem. Well, it IS a problem. I contacted my lender and they said they don't service LLC Loans.

St Petersburg Housing Authority is paying rent to my LLC and the Insurance for the properties is all in the LLC. Is there anything I can do? Will this be a problem when I file taxes?

Someone told me to just deed the property into the LLC. As long as the mortgage payments are made on time, I shouldn't have a problem. If I do have a problem, he said just deed it back into my name.

Can anyone shed some light on this for me?  I also need a CPA/Accountant to prepare my tax returns.

You have a few issues going on @Francene Iaizzo . First, you definitely want to have a CPA to assist you with your returns and tax planning.

Regarding titling of the property, you can certainly transfer the deed into your LLC. However, if your mortgage was for personal financing (which it sounds to have been), that could trigger the due on sale clause in your mortgage terms. If the lender were to create a problem and call the loan due, you would most likely have to refinance the loan. They wouldn't allow a simple transfer it back into your personal name.

Thank you @Dan Barli I thought about that but I don't want to pay to refinance. I read that when transferring to the LLC, the Insurance subsequently has to be put in the name of the LLC and this is how the Lender finds out. My Insurance is already in the name of the LLC so that wouldn't happen. However, what about the taxes. They are currently being escrowed so the Lender would see the taxes in the LLC. upon transfer. If I were to pay the taxes myself (no longer escrowing) how else could the Lender know the Properties are in the LLC?