Transferring from personal ownership to LLC

[Paul Passafiume]

Investors,

Please help me. I am buying a multiplex in Louisville, KY. My bank wants me to buy it in my personal name since this allows me to get better (secondary market) rates. 

I have a KY LLC. I prefer all my properties stay in it due to liability (plus a I pay lots of annual fees on the LLC)

Has anyone bought a property in their name, then transferred it to their sole member LLC via Quitclaim Deed? Is this process easy? Any risk? How much will an attorney charge to do this, and what are the doc stamp/recording fees generally?

Thanks so much!

[Pedro Martins]

@Paul Passafiume, a quitclaim deed will set you back about $200 and the recording fees are $17. All straightforward done through an attorney. However, more important is the discussion you have with your bank. If you don't tell them that you are doing this transfer and they find out they can activate the due on sale clause which would mean you having to pay the full owed amount immediately. And since the insurance would have to be in your LLC's name, they will find out...

You are better off finding another bank that is ok with the property in your LLC's name from the start - I have done that with First Capital Bank of Kentucky with no issues. If 0.5-1% rate difference creates a big concern than maybe you shouldn't get this deal to start with.