? About Properties I Acquired Before My LLC Was Set Up....
I acquired 3 properties before my LLC was set up, now the set up is complete. Geez did it take forever. Now that it is set up I want to transfer my properties into it.
When doing so, will the lenders look at this as a change in ownership?
Oh, these properties are owned by me, they are not sub-tos or anything.
Any opinons are greatly appreciated.
I'm just getting started in buying my first properties, however I setup my LLC before I started writing offers. My attorney advised that once I purchased the property(ies) I can then quit claim to my LLC. Lenders won't let your LLC buy the properties first unless it has significant capital and/or credit history. The drawback in Pennsylvania is that a transfer tax is charged every time a new deed is recorded, which is what happens when you quit claim it to your LLC. To get around this I am writing my offers on properties "on behalf of my LLC, or nominee". According to my state this gives them notice that I will be quit claiming it and they then won't double tax me.