Real Estate: LLC options

[Jason Morris]

Hey guys! I just closed on my first investment property a few days ago. Unfortunately for me the lender and the title company were not seeing eye to eye. I was unable to close the investment property in the LLC. I had to close the property in my personal name. Now I have an LLC with no business. What are my options? It's too costly to move the property to the LLC after the fact. Should I still have the rental income deposited in the LLC bank account? Or should I just keep this property separate from the LLC?

It's complicated because the LLC was named after the address of the property. It's pretty much useless now. I was considering attaching a DBA to the LLC then using the DBA bank account for rental income and to pay for repairs.

Any suggestions? 

[Tom S.]

@Jason Morris Moving the property to an LLC will not remove it from your credit. Your name is on the mortgage as you personally guaranteed it. Even if you first closed in an LLC, all banks will still require the PG.

Also if you're keeping it as a rental, the LLC takes no difference as it will still be reported on Sch E of your taxes.

In the future you can consider commercial loans that don't report to credit agencies (or owner finance deals). I have a lot of mortgages like that. So credit score wise nothing is showing.  However when applying for another mortgage, it still shows on my tax returns and you have to disclose it in the personal financial statement lenders require.

Hope that helps,

- Tom