Buying Properties With An LLC
I have been told you can't buy a property in the name of the LLC but rather in the name of the person who has the LLC. I was under the impression you could purchase property under an LLC and not your personal name.
Am I just missing something here or am I being told false info? Is there a way you could go and have the property put in your LLC after closing and is the the ONLY way to do it?
Any feedback would be very helpful.
thanks
Yes, you can buy a property in the name of your LLC. I know this because I have done it in my state. I'm not familiar with all the other states' quirky real estate laws on property sales, but I doubt it would be any different. What someone might have told you is a matter of circumstance. For example, it's tough to get financing for an REI LLC that is small or new or without a personal guarantee for repayment. In this case, the sale would have to be in your name because the LLC can't get financing. But on the other hand, if financing is not an issue, there would be no problem for an LLC to buy the property in cash.
The problem is that it's nearly impossible to show that the LLC has the creditworthiness to qualify for any financing when just starting out. There is virtually no credit history, no income history, and generally no money of substance stored anywhere in the name of the LLC. Someone (a person) will be the one qualifying for the financing. The lender may allow you to take title in the name of the LLC, but the LLC will not be the one buying the property when financing is involved.
Jeff