Buying privately and putting it into an LLC

[Nav Singh]

First post (yay!).

Hi BP family,

I am a newbie investor and hope to find success like many of you on this forum. I already bought my first property (all-cash) about 2 weeks ago and have lined up my second one. The thing is that my first property is under an LLC I created before buying it.

The next one, I don’t have money to go all cash, so I need to take a loan. I’ve been pre-approved but it’s not under the business's name (it’s under mine). I don’t think the business will be able to get one since it’s too new (even with a free flowing property).

The questions are:

1. Have you bought properties under your name and transferred it into an LLC later?

2. How soon can you transfer it?

3. Does the loan company give you trouble for doing such a thing too early?

Looking forward to hearing all the responses. Any other advice will be much appreciated. Thanks,

Nav

[Cara Lonsdale]

You can Quit Deed a property from your name into an LLC as soon as the ink dries on the purchase of the new property.

Be aware that the lender may have terms that prevent this, or give them cause to call the note due if it is done.  I have not seen this exercised without other issues like delinquency, but they have the ability to do it.  So you need to be aware.  It's a simple fix to Quit deed it back into your name.  You will most likely need to do this in order to refinance it as well.

If you are looking for temporary financing, many hard money lenders will allow you to purchase as an LLC as they qualify the property, not you. FYI.

Hope that helps!  And Welcome To The BP Family!