How can i put my investment property under my LLC?
I recently opened my LLC an I am in the process of closing on my first rental property under my name. Can I put the house Deed at closing under my LLC name and have all the checks from the rental property paid to my LLC?
Thanks for the question.
First, check with the lender and see if they’ll let you close in an LLC. Some do. Some don’t. If they don’t, ask if you can move the property into the LLC after closing. Make sure doing so can’t potentially accelerate loan repayment. If you do it after closing, you’ll need to deed the property to the LLC, typically with a quitclaim deed. You may want to hire an attorney to transfer the property to your LLC just to make sure it is all done properly with the right legalese. If the bank is letting you close in the LLC this is done by your closing attorney or title company, and likely a warranty deed (varies by state).
As far as collecting rent through your LLC, once the property is moved into the LLC, take the paperwork you got from the Secretary of State’s office to your bank and set up a checking account under the LLC name. It doesn’t have to be a DBA account, but you should manage all property financial transactions through your LLC bank account, with the exception of escrows like security deposits and last month’s rents, which are held in separate interest-bearing accounts.
Great questions. Hope this helps.