I am looking at a few multi-family properties (4-6 units) in and around Dayton. I typically like to purchase/place my properties into an LLC, but I realize this means commercial mortgages (higher rates, higher down payments).
I was told that an option is to purchase the property in my name, get the "better" financing, and then do a quick claim deed to transfer the property out of my personal name and into an LLC.
I thought this didn't sound right - is that legal in Ohio? I thought that would be wrong for 2 reasons:
1. Bank gave loan to me, not an LLC - bank does NOT allow this? Or some banks do?
2. Would have to pay transfer tax for transfering title over to the LLC?
Does anyone know if either or both of these are true, and if so, what the transfer tax rate is in Ohio?
***To be clear, I have not purchased any property in Ohio, am simply attempting to understand the rules/laws in the state and thought some of you may be able to help. I hope I can return the favor someday.
@Tim Chiodo I’d be happy to field some of your questions regarding this. Please message me.
I'm in Washington state and have been able to do this successfully 2 times. You first call should be to your lender (in my case it was a broker) to double check that doing this won't be a problem - the nuance lies in what you're talking about - them loaning to you, not an LLC - but (in my case) if the title matches the name(s) on the LLC you'll be fine. Your second call is to a real estate attourney bc again the nuance involved in filling out the forms is a pain in the *** + you need special legal sized paper with margins of a certain length - lol - I thought I had it all dialed in, brought it to the assessor's office (or whatever city, windowless room it was) and got pinged $85 for the wrong paper size. :) I am currently working on quit claiming our recent purchase into the LLC and after gathering most of the paperwork have just left a message with an attourney so I don't have to go through all those hoops again. Best of luck.