moving property from fix and flip company to rental company
Ok, my partner and I have almost finished a large flip project south of richmond Va. We have a wyoming LLC that will file taxes as a C corp that controls a Virginia LLC that is an IRS disregarded entity. Only the wyoming LLC will file a tax return. The Wyoming LLC paid all expenses for the rehab. The wyoming LLC took over the property with a contract for a down payment with the final payment to be paid after 3 months ( in a few weeks). We bought very cheap but with major rehab expenses. Since real estate sales are slow due to high interest rates we decided to keep the property as a rental. but we need to refinance it (75% of appraised value) to get our investment back out plus some profit. I am in the process of setting up another partnership LLC (non C corp tax filing) structure for rentals so my partner and I can share the depreciation deductions in a way to cover other personal income. (1) I got a recomemndation for a virginia banker for investment property - good guy , very enthusiastic etc. But he referred me to a mortgage company that says they can only refinance property in a personal name not property in the name of an LLC. it must be possible to finance property in an LLC because that is a common way to hold title to real estate. anyone else run into these kind of problems ? any problems with transfering property from personal to LLC or transferring between 2 LLCs.? (2) possible tax filing complications because the fix and flip LLC paid for the repair expenses but the rental LLC or partners personally will likely own the property when receiving the money for the bank finance. Not sure how to handle the property closing in a few weeks. Any suggestions ? Thanks.
@Hugh Smith - you need to hire a professional services team that includes an attorney familiar with the multiple states and an accountant.
Mortgage... keep asking. Not every bank and lender are equal.