transfer assets to a partnership LLC

[Scott Pennington]

I am interested in selling (transferring) my personal solely owned rental property to my partnership LLC

the goal is to free up the equity without incurring unnecessary cost. (closing cost)

[Bill F.]

@Scott Pennington  Do you hold title to all of the property/properties free of any liens? 

If you own the properties free and clear transferring them won't free up any equity for you. Think about you and your LLC like different people entirely. Since you own 50% of the LLC but 100% of the properties transferring them to the LLC causes you to lose half of the value of the properties. If you don't want to give away 50% the value of your homes, the LLC will somehow need to pay for it. The LLC can do that in three ways: Debt, Equity, or Cash. If the LLC has the cash to pay for the homes that is the simplest. Your partner could inject money into the LLC in the form of an equity injection. The LLC could use a Line of Credit or you could do seller financing to the LLC and get paid back over time.

If one of the homes has a mortgage on it, you can't deed it over to an LLC that has another partner. The bank made a loan to you, not your LLC. At he very least it will violate the Due on Sale Clause.

@Tom Gimer is a better person to ask about the warranty deed vs non-warranty deed transfer for this situation. 

If I was you I'd go to a Real Estate Attorney and a CPA to get some guidance before making decisions.