All Forum Posts by: Nav Singh

@Cara Lonsdale makes some good points @Nav Singh. Assuming you want to put the property in a LLC for asset and personal protection reasons, which is completely understandable. An alternative to LLC protection is something called an umbrella insurance policy. These work great for new investors who have only a handful of properties. Give your insurance agent a call to talk specifics but a typical $1MM-$2MM umbrella policy is a couple hundred bucks/year.

Many states and counties also require transfer taxes when you move a property into an LLC, which is also something to consider. Im using a loan against my primary residence for my first rental, but my primary residence isn't under the LLC. You could try that if you have enough equity in a private residence. You could also try to borrow against the property you bought in cash, the lender may allow a commercial loan since you already own the property you are borrowing against. Private money lenders typically will lend against any income-producing property without regard to the entity that wins it also.

There is not time period.  Some people Quit Deed their properties the same day the close.  A Quit Deed is a 1-2 page document that isn't hard to complete.  You can find one online.  You can cerntainly pay an attorney to do it, and that is your choice, but I don't think it's necesary.  I would suggest downloading one online and taking a look at the language.  If it is anything other than straightforward to you, then maybe your attorney would be a good idea, but I think you will find it a pretty simple process.

You can Quit Deed a property from your name into an LLC as soon as the ink dries on the purchase of the new property.

Be aware that the lender may have terms that prevent this, or give them cause to call the note due if it is done.  I have not seen this exercised without other issues like delinquency, but they have the ability to do it.  So you need to be aware.  It's a simple fix to Quit deed it back into your name.  You will most likely need to do this in order to refinance it as well.

If you are looking for temporary financing, many hard money lenders will allow you to purchase as an LLC as they qualify the property, not you. FYI.

Hope that helps!  And Welcome To The BP Family!