All Forum Posts by: Hanah Frickers

Hi Charlotte- if this is still relevant: I would always recommend speaking with a lawyer/CPA regarding these sort of topics. I have used an LLC established in one state for a property based in another, and just received a license to operate in the state where the property is based.

Looking for some insights into tax implication (if at all) of transferring a property from one LLC to another. Some more details:

-Old LLC owns a bunch of properties, has one shareholder.

-New LLC owns nothing yet, and 80% owned by Old LLC shareholder and 20% by an additional shareholder.

-Wish to move the property to New LLC as cleaner and wish to take out loan with the additional shareholder as a part owner.

-Property is in IL, LLCs incorporated in MO but doing business in IL.

I noticed that even with a Quitclaim Deed, in Illinois you need to submit a Illinois Declaration of Value form alongside which is what has raised some questions. 

Any advice and help will be much appreciated! Thank you :)

Hi @Yonatan Weic @Richard J Reid and @Chris Popov

I am also a real estate investor from the UK (London) and have been investing mostly remotely for the past two years. I found it tough to find financing and worked mostly with private investors but with high rates.

I now work with a Fintech platform that lends exclusively to foreigners investing in US real estate and they offer highly competitive rates. Check us out https://www.lendai.us/who-we-a... and get in touch to see how we can help you :) 

Happy investing!

 Hi Jake,

Hope things have been working out well for you!

We offer lending exclusively to foreign based investors and I'd be happy to discuss how we can help fund your new and existing properties. 

Feel free to reach out!

@Clint Coons appreciate your response!

@Clint Coons thanks for your response! 

I assume that the transfer tax is unavoidable (assuming the county considers 50% ownership in LLC) under any of the examples mentioned above; Quit Claim or the Land trust?

@Will Fraser Thanks for your response! Will keep you posted.

@George Skidis Thank you for taking the time to respond! Some additional background: the reason behind this is due to difference in our intentions for the property. My partner wishes to undertake some work on this property (converting from a 2 unit to a 3 unit and major rehab) which I would rather avoid. I am more risk averse and he has longer term plans for the unit. Therefore, there is another property of his that we can exchange and so he will be free to proceed with his desired work.

Thank you for the Land Trust idea. I will look into this!

Hi BP team,

My business partner and I own one property through an LLC (split 50-50), which for various reasons, we wish to exchange for a different property he owns outright through a separate LLC. I am looking at what might be the most cost effective way to change the ownership of these two properties without an actual sale occurring.

Some guidance what was suggested by a tax accountant was for me to sell my shares in the LLC we own together and then create a new LLC to transfer the title of my business partner's property to. This is to save costs relating to transfer taxes.

Does anyone have some advice or similar experience with such a scenario? 

If it helps, the property and LLC are located in Illinois and the value of the property is under $40k.

Many thanks and stay safe!

@Caleb Jordan thank you! It will be strictly investment. If you know any such lenders in IL i’d Be glad to hear.

I'd appreciate any input from lenders or investors in a similar predicament:

I'm looking looking to make an offer on a 4-plex in IL and seeking a lender for a $60k loan. The trouble I am facing is that I only have 1 year's worth of W2/tax returns for 2018 (moved to the US in 2018). 

I have also come across a local lender that will not lend to out of state investors when the loan is a portfolio loan. Anyone else have this issue? 

Any suggestions on how to overcome this challenge? Any lenders out there with any advice or input? 

Thank you in advance for your help!

Hanah