Can I Put My MN Investment Property into an LLC After Buying it Personally?
Given the basic facts about starting LLC’s and gaining financing in them, many people choose to start the financing personally on their new real estate purchases and worry about getting them into the LLC later.
It is not a difficult or complicated process. The main thing that needs to occur is that the financing transfers out of your personal name in into the name of the corporation/LLC. This is the biggest step in removing the liability and separating it from your personal property.
Then how is this accomplished?
Simply go to your favorite lender (as each lender will have different specifications) and ask them what is needed to refinance the property into that corporation or LLC. Usually the fees associated with this are minimal, and you simply must have a minimum amount of equity already built into the property or, pull that cash out of your own pocket so that the bank is convinced its financial investment is secure.
Once that is finished, the title/deed will also need to follow suit and is usually done all at the same time.
After your property (or properties) are safely and securely inside their LLC or corporation, you now have three levels of protection: your basic hazard insurance (included when you get any mortgage), your umbrella insurance policy usually covering several properties, and now you’re corporation/LLC.
