Quitclaim Deed to an LLC

[Ron Averill]

I've seen some discussions on BP regarding the topic of QuitClaim Deeds (QCD), but I'd like to get more personal opinions and legal opinions from the experts here.

Background: I started a new LLC, within which I plan to buy and hold properties. This is primarily for liability protection. I have not bought my first property yet, but plan to do so in the next month or so.

Situation: Most banks have different terms for commercial loans (e.g., to LLC's) than for residential mortgages. I have found some banks that will offer residential mortgage terms for rental properties as long as I purchase the properties in my name (not in an LLC).

Question: It was recommended to me that I purchase the property in my name and then QCD the property to the LLC. This seems a bit questionable to me, though apparently it is very common. Do you recommend this? Can you provide some insight and legal advice on this practice? What are the ramifications? And do the laws regarding this vary from state to state?

Many thanks,

Ron

[Account Closed]

@Account Closed LLCs only don't protect if the people don't keep the paperwork correct. Maintaining your records, operating agreement, keeping the funds separate,etc Treating it like a business.

To not have insurance would be foolish as well, but not putting a property in an entity is a rookie/amateur move.

LLC's are powerful if handled correctly

Disclaimer: I am not an attorney, just an investor with several LLCs that have all stood up in court protecting me.