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Re: transfer rental property into an LLC - Landlord Forum thread 326123

Re: transfer rental property into an LLC by Monica (Ohio) on October 22, 2014 @01:42

                              
No, it will not be treated as a sale unless you sell the property to the LLC so no capital gains tax. Why would you need title insurance? You should already know what kind of liens there are on the property if any.

It is totally pointless to transfer your properties into an LLC, the records will show a trail if you are trying to hide asset to protect yourself, it wont work. At the time of purchasing is the time to put the property into an LLC.

Another point to consider, when you have to do an eviction with the property in an LLC, you can not act as a lawyer for your LLC, you will have to hire a lawyer to handle your evictions.
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Re: transfer rental property into an LLC by P-Bone (NY and OH) on October 22, 2014 @07:48 [ Reply ]
I agree. In the long run, increased insurances and umbrella insurances are probably a better way to go unless you have a significant amount of real estate holdings, are well financed and capitalized, and would likely be paying others (lawyers) to act on your behalf anyways. Otherwise, I don't think it's overly worth it. If the LLC is not capitalized properly with enough assets to cover liabilities or if any liens or mortgages are backed by you personally (your credit), then the protections won't hold up.
Re: transfer rental property into an LLC by Nicole (PA) on October 22, 2014 @11:42 [ Reply ]
he needs title insurance not because of his own liens but because of any multitude of title issues what previously occurred but haven't yet been discovered or claimed.

I'm certain it's state specific but if the original was a standard policy probably will not "transfer" unless he paid for an "enhanced" policy ... I believe FirstAmerican calls it an "eagle policy".

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