Transfer Title of Rentals to an LLC - Is an Attorney Necessary?

[Casandra M.]

My husband and I want to re-title our three Wisconsin rentals into an LLC. Is it absolutely necessary to do this through an attorney? Any opinions if it's really necessary to use a warranty deed vs a quitclaim deed? There shouldn't be an issues with the titles, so I assume quitclaim deed would be fine.

[Marcus Auerbach]

Yes, quit claim deed will work, as your title company for specifics. Note that you will probably violate/trigger the due on sale clause of your loan, if you have one.

IMO LLC's are overrated for small portfolios. Not enough equity to protect. And if you really want to do it right you have to put each one in an individual LLC, as the whole point is to build firewalls between your assets. And you personal assets in a trust. Which makes sense if you have three large apartment complexes, because they each represent a large sum of equity and risk exposure.

Be sure you run a responsible business, maintain your properties well and make sure they are code compliant, get good insurance and an umbrella policy on top. (And of course: This is just my personal opinion, please consult with your attorney.)