NEW Home As Rental
I am in the midst of purchasing a Brand new home from a builder here in ARIZONA. The build time is 6-9 months.
I plan to rent the property as soon as it is complete. Should I take title with an LLC first, or close in my name and then transfer to the LLC within days following.
Thanks.
If you ar4e getting fiancing for this property in your name, the lender like the names to match. So if you are getting loan, put your name on the title and then transfer to LLC later. If your LLC is getting the loan, or if you are paying cash, then you can put it in LLC name directly.
cool, is there anything i should be aware of when transferirng into an LLC within a week of closing in my name? DO i need an assigns clause when i sign the purchase contract?[ Edited by jstrebel on Date 11/08/2004 ]
I would try to get the lender to allow you to put the title directly to the LLC. Some lenders will; some won't. A trick I have read over and over again is to tell them you want to do this for "estate planning purposes". Oftentimes they will tell you no up front and then you can instruct the closing agent about the LLC.
You do not need and/or assigns in the purchase contract. That is only if you are going to sell your right to close to someone else.