All Forum Posts by: Clark Peterson

Hi @Adelaide Ning, I would only place the property into an LLC if you are forming a partnership around the property as an investment. In that case, an LLC provides a tremendous amount of flexibility to manage potential future changes (adding or removing members/owners, etc). You've already cleared this with your lender it sounds like, which is great to avoid an issues with your lender (i.e., due on sale clauses, etc). The other thing to watch out for is transfer taxes, which are generally applied at the local or state level, though there are generally healthy exemptions. Other commentors have already addressed their recommendations with regard to the process, but I would reiterate that use of a local title company is probably best, just to be on the safe side. Though many find a quit claim deed to be pretty simple to handle using services like https://directdeeds.com/. Good luck!

You might be able to hold property as Tenancy in Common with ownership proportions equal to the amount each of you want to invest in the property and then finance it with conventional loan like an FHA loan (if you're looking for something like 3.5% down). The key will be determining that this is in fact your primary residence and working with a lender who's willing to work with you on this arrangement. An LLC in this situation will not help and will only add complexity.

 @Ashish Acharya can you expand a bit on what you mean by "make your operating agreement with targeted capital allocation"? 

Lots of great options for you. Feel free to send me a DM if you'd like to connect. Thanks!