Simple Question
I bought a condo in another state with a couple of partners. We purchased it in our name as a second home, and a month later we created an LLC. I believe we have operated the LLC in good judgement, with a proper bank account, corp meetings, binding agreements, etc.
Question is - how do we transfer the title and the mortgage into the LLC? Do we have to sell it to the LLC or is there a simple transfer process.
I remember months ago someone telling me that there is a box that we need to check during the time of closing, which allows an easy transfer into an LLC. Anyone know what I am talking about?
In either case, we really need to get it into the LLC, and would appreciate any advise on how to do this in the simplest manner.
Thanks in advance.
Transferring title to the LLC is easy ....
The problem is the financing. You did not specify if the financing was in your name, or joint with partners.
In most cases your mortgage likely has a due on sale clause which means that the mortgage will be called due upon transfer of the property. This is where your problem begins.
Your LLC will likely have to have sufficient history and credit to obtain a mortgage in its name.
The mortgage is on all of the partners names. What is the best next step to start this process?
Make sure that you have an operating agreement for your LLC that governs the LLC. How capital accounts, depreciation, a members leaving/entering, death of member, tax matters partner, etc., will be handled. This will solve many problems in the future.
Yep, have that in place. But, how do I go around the mortgage bit and not have to take out another loan under the LLC?
anj1130,,
Glad to meet you.
I can give you 32 thousand reasons why they are selling after 15 months.
If all the due diligence is done, inspection etc., then it sounds to me your problem is you were not the one getting the $32K only were the one paying it.
Just think about it for moment, would you sell it for that kind of profit after15 months?
John $Cash$ Locke
[addsig]
I suppose so, but this is the Chicago market - people made a LOT more than that in a year and a half.
anj1130,
Then if this is the case, look at it this way, you got a deal.
John $Cash$ Locke
[addsig]