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Updated 4 months ago,

User Stats

6
Posts
6
Votes
Ray Detwiler
  • Investor
  • Coral Springs FL
6
Votes |
6
Posts

Transfer of home to LLC and future vulnerability/liability

Ray Detwiler
  • Investor
  • Coral Springs FL
Posted

I've tried researching this a bit but haven't quite been satisfied with what I have found, so I apologize in advance if this has been answered and I just missed it or didn't understand it correctly.

Few questions - 

1) I have taken the first leap and am closing on a property in Ohio mid October.  We live in FL. It's my family's first rental property. I have tried to read and research as much as possible along the way, but am discovering that there is a lot I don't know, so I am still learning as I go.  
Due to more favorable loan terms (and a bit of impatience/ignorance on my part) we went the traditional financing route for the property, with my wife and I both being on the loan. I am in the process of putting final touches on Irrevocable Trust and Delaware Holding LLC with my attorney. The plan was to open an Ohio LLC that would be owned by the Holding LLC and put the property under that LLC. Holding LLC would be owned by Trust. HOWEVER, I'm reading a lot of mixed reviews on whether I'll be able to put the property in an Ohio LLC (we won't be the primary owners of the LLC, since it will be owned by the Holding LLC. I've also heard lender may require repayment or refinancing of the loan).
Am I F'd at this point? or is it still possible to transfer the home to an LLC for asset protection with a quit claim?   Would we be able to put the home in the Holding LLC since our names are directly on it (albeit a Delaware LLC meant to hide our identities)?

2) Assuming I can proceed and put the home under an LLC of some sort, what would stop the tenant from just checking the county tax records and finding out who is listed as the last purchaser, and from there come after my family? Would we still be vulnerable at that point, even if the property is in an LLC?

I've tried to provide all the relevant info but if I missed something that would assist in answering the question, let me know.
Thanks for your time!

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