Starting an LLC and purchasing 1 of one my properties

[Bryan Brooks]

I have owned a property since January 2005. It has been rented since 2010. It is not my primary residence. I'm wanting to start an LLC and purchase more properties with cash reserves that I've built up over the last several years. My question is can my new LLC venture purchase this property from me? Is there any illegal about doing that?

The reason for doing this is that I can sell the property to the LLC and receive the equity in the property plus I can eliminate the cost of the real estate agent for a quick transaction. It would leave the property on the LLC books as an investment property and the rate would be higher but it would give me access to the current equity in the property.

Thanks.

[Bill B.]

Most banks won't want to make a loan to an LLC, especially a brand new one with no assets. (What if the LLC never made one payment on the loan?)

Why not just do a cash out refi? If you want to get it out of your name for liability you could ask the lender if they’d be ok with a title name change after the fact. You might be better off just getting an umbrella insurance policy.