My Property is in an LLC

[Wojciech Grajewski]

Hello,

I own a house in Long Island NY that I paid off in full last year. I want to put the house in an LLC to keep it separate from me but I'm worried since the LLC is brand new I won't be able to pull money out ...? I want to pull enough for 1 or maybe 2 properties but now sure if I can use my personal credit to do so?

Also, would it matter if the LLC is in a trust?

If you are a lender and have experience feel free to reach out to me. Thank you! 

[Stephanie P.]

Quote from @Wojciech Grajewski:

Quote from @Steve Vaughan:

Quote from @Wojciech Grajewski:

I own a house in Long Island NY that I paid off in full last year. I want to put the house in an LLC to keep it separate from me but I'm worried since the LLC is brand new I won't be able to pull money out ...? I want to pull enough for 1 or maybe 2 properties but now sure if I can use my personal credit to do so?

I wouldn't put a house in an LLC unless I never planned to put debt on it again or it was with a non-related partner.

LLCs pass through to you so it will be on your credit anyway and you'll be subject to commercial financing only. No 30yr fixed GSE mortgages for you. 

The title chain will show you conveyed so you won't have anonymity either.   Insurance- hazard/property and title can have problems as well.  

I do hold commercial assets in LLCs and have 4.  They blend better with financing and insurance.  

 I don't mind that it goes on my credit. Also, I don't mind that the title chain will show I conveyed it. 

I want to have it separate from ME in case of divorce ... there has to be a way to do this?? What about just putting the house in a trust and running the property that way. I don't want the profit from the property ... I'm ok with the trust keeping the profit and buying more properties ... 

Refinance it in your name with conventional financing. Then put it in a trust. That way you get the cash to do what you want and you're protected. If you do it in a sole member LLC, you're not that protected.