Investment Property in Business Name

[Chris Teti]

I'm hoping someone can give me some advice. When buying an investment property here in NJ to either to flip or hold, my plan was to move it into my business name (newly formed business) after closing (simple deed transfer). I purchased the property in my name and with a mortgage in my name only, but the business has another partner.

When going to have the deed changed, that is a pretty simple process but the other items (insurance, mortgage, etc) seem to be more complicated. They either restrict this from happening or require me to get more expensive commercial based policies.

I hear about people doing this all the time but it doesn't seem as straight forward as i had hoped unless I'm misunderstanding something. Any advice or recommendations would be appreciated. Thanks.

[W. Alex Benitez]

I am in a similar position and did some research then contacted my RE attorney.

What I heard was that you can perform a quit claim deed and transfer the property and insurance into an LLC.The challenge is with the lender, typically lenders to a conventional loan will not allow transfer to LLC but you may want to call and ask.If they approve get it in writing so you have a legal document.

If you try to perform this without informing the lender, they may call the loan.This will typically happen when they are confirming that you have insurance on the property.If they see the insurer as XYZ LLC, red flags will go off.

In speaking to my attorney, he advised that I contact my lender and inform them which I did and they refused.Sooo my solution is to renovate a unit (tenant moving out) and refinance to a commercial loan.