LLC and spouse.

[Kevin S.]

Hi everyone, I am about to create my first (Florida) LLC. My first investment property will be a SFR and loan will be on my name only (income reason). I was told by one lender that the property has to close on my name and transfer to LLC 'after' the closing. In order for the loan not to be called out the LLC has to have me as majority interest. What does that mean? My spouse will be minority interest? Not sure how my spouse will look at it. How do I go about it? Appreciate any advice I can get. Thanks.

[Chris Seveney]

@Kevin Si

As

Others mentioned skip the LLC and save money and just keep it in your name . The LLC is one of the most overused and misunderstood things in real estate

It's supposed to act as completely separate from you. Look at it another way, would anyone else buy a house and give it to you for free and pay the mortgage (that is what you are doing when you give your LLC a home)? Since I think we can all agree on the answer as no - a court would not look at that as an arms length transaction and thus give you zero asset protection (note not a lawyer just someone with some common sense)