Transferring my properties to my newly established LLC

smoore · Joined: 04 Mar 2008 Posts: 1 1.37 Dollars($)

I have three properties (one single family, one duplex) and I will be obtaining two more this year (triplex, and another single family) . I established and LLC last year and I was thinking of quit claiming all my properties ( all currently rented by the way) to the LLC and paying the mortgages out of my business account. So far for the past two years. What is the benefit of doing this other than the liability of my tenants suing me versus my LLC.
Thanks

jheard · Posted: Tue Mar 04, 2008 8:24 am Post subject:

Liability protection is the main factor. Ease of administration is another. All property info is in the LLC name.

You could quitclaim or grant deed the properties to the LLC.

gmakerley · Posted: Tue Mar 04, 2008 1:31 pm Post subject:

in all likelihood, you will not encounter a problem, but you ought to be aware that your lender(s) might have a clause in their documents stipulating the ownership type.

as long as you are making payments, this will probably not come up - just keep it in mind.

larry · Joined: 27 Jun 2007 Posts: 3074 431.95 Dollars($)

Hi smoore,

Welcome to the forum.

First of all I should say that you should not add those properties to LLC as these are mortgaged properties and this will be subject to due on sale clause as George has also mentioned above. LLC is totally a different entity altogether. So it will be better consult with your lender and check through you mortgage documents before adding your properties to the LLC.

Feel free to ask if you have any further questions.

Best of luck,
Larry

jheard · Posted: Thu Mar 06, 2008 8:37 am Post subject:

Yes, check with the lender. Usually, the lender won't object if you sign a personal guaranty.

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