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Updated about 5 years ago on . Most recent reply
Current co-owner in personal name needs LLC-held loan for buyout
Attn: I don't need a lender because I already have one. This post is only about the strategy of moving a 50/50-held personal asset to an LLC-held asset, including a mortgage. The purposes are to buy out my partner + have the LLC hold title.
I own a residential investment property in CT with a partner. The title is in our personal names. I'm getting a mortgage to buyout my partner. This mortgage must be held by an LLC (and I prefer that). I can start my sole-member LLC today thru CT-SOTS anytime.
Is it possible to quit-claim the property to the LLC 1st and get the mortgage after that? Is it better if I start the LLC using specific language knowing it's being established for the purpose of holding this asset/house? I usually use the "any allowable activity.." language when starting an LLC but please advise if more is needed. I fully expect the LLC to be held in an IRA in the future. (Oh geez, should I establish that first?)
It's best if I personally did not hold a mortgage on this property in my name, even for 1 day. Also, I'd like to avoid conveyance tax. Thanks in advance.