Changing ownership from self to LLC

[Eric Schneider]

I'm wondering if the group can point me in the right direction. I recently purchased my first rental with a traditional loan in my name. I recently got it rented and wanted to put it in the name of my LLC, so I filed and submitted a quit claim deed, and was wondering what else is needed to have it under the LLC? Thanks in advance for any pointers.

[Dale Stevens]

@Jeremiah B. are you really telling someone not to file a LLC because most don't file them correctly? Seems to me, the advice should be "Yes this a business and should be treated as such. With that being said, this means you must TREAT it as such. File the paperwork correctly, do not co-mingle funds, keep the paperwork for meetings, minutes, annual filings, etc up to date. Get the proper EIN for the entity, etc.

To say an insurance policy will protect you is absurd. @Steve B. nails it . do you believe that an insurance company will actually not find a loop hole to leave you high and dry? They aren't in the business of paying claims, but charging premiums!

But yes, sure you can get insurance and it might pay out on small claims. With that said, real estate investors that rely solely on insurance as a means of protection from personal liability take a significant risk. Liability policies typically have limits, exceptions and carve-outs. While the chance of a loss that exceeds policy limits may be remote, if it happens, the consequences can be devastating.

@Eric Schneider as you stated, this is a business. Get a proper attorney's advice to protect yourself correctly! If the attorney believes you shoudl keep it in your own name and use an insurance policy, I would be shocked, but they are the ones that know the laws.