Rental Property Investor · GA · Member since 2015 · 16 posts · 1 vote
Hello
I have bought some of my properties with my real estate LLC name and some with my personal name. I was wondering if i could use the same real estate business account for both rental income to make things simple or do i need to open a separete personal account to deposit the rental income coming from the properties owned by myself. Appreciate the suggestions in advance.
You should use limited warranty deeds to transfer the rentals from your personal name into your LLC, put all rents into the business account and buy a good umbrella policy for liability protection. Now you are protected from being sued personally and you have good liability coverage.
@Aj Khan the best way to think about an llc is that it is a different legal person. Just one that you happen to own and control. So, no you really should not co-mingle your personal funds with those belonging to your llc. But, why not move the other properties into the LLC? That is really better anyway to protect you personally from liability. And it is pretty easy to do using a quit claim deed.
1) You could make your LLC the property manager, then you could collect rents all in the LLC whether it was owned by you or LLC.
2) If you transfer the title into an LLC you will be violating the DOSC of your loan. While its not likely that they will call the loan due, it is possible and well within their rights.
3) You can get financing for real estate held in your LLC using portfolio lenders. I have many properties with loans in an LLC name and have done it for 15+ years. Your best source are the small community banks. Don't waste your type with conforming lenders.
Thanks so much Stan. I am assuming that in order to make the LLC as property manager, i need to have the lease rewritten between the tenants and LLC, correct? Also, is there any particular step that i need to take in order to make my LLC as property manager.