How To Transfer Property To LLC
I have rental property in Wisconsin. I purchase the lot and hired a contractor to build the house. I have the deed to the lot but not the house since I borrowed money from the bank. I would like to transfer to LLC. Can anyone guide me through the process? Do I need to hire a lawyer to handle the paper work? Thank you very much
To avoid a DOS you need to place the property into trust and then assign beneficial interest to the trust.
[addsig]
Thank you very much for the information. I will definitely check into it.
Lawyer said that the seller has to prove damages.
The seller sold the house a week after
It would seem that in the normal course of doing real estate there are a set of contingencies that one includes with an offer. High on the list is obtaining financing if financing is needed for the transaction.
If your post is solely about your friend, there may be a problem if the only reason he was turned down is that he could not come up with the down payment. After all, he wrote an offer that assumes he had the down payment. If he was turned down because of credit or other parametric reasons, then through no decision of his own he cannot complete the contract and should be released from obligations assuming that obtaining financing is a contingency. If the lender can state that he would have been turned down anyway because of the high debt to income ratio seems to be sufficient for refund of any earnest money.
I think that you are right in terms of the damages. It seems very hard for the seller to show damages if he was under contract the following week to another buyer for more money.
Thanks guys. This has been going on for almost 4 months now. mediation is rather expensive and arbitration is even more expensive. They are working on coming up with a figure that both will be happy with. I will let you guys know the results soon enough.
Thank you for your responses.
I would forget the LLC.
Does not guarantee 100% protection anyway.
Have to maintain the LLC
Will need more expensive commerical insurance if owned by LLC, otherwise may not pay on a claim.
If bank finds out transferred to LLC may call in your loan
Go for the LLC. The maintenance of the LLC is extremely simple (especially in the case of a single member LLC)... The cost is extremely low and relatively easy... AND it does offer some asset protection...
Good Luck!
[addsig]
Keep in mind you will also need a seperate tax return and bank account for the LLC. Has to be seperated from you personally. And if you still have the loan in your name it would be easy for a court to find you only have the LLC to protect the assest and can make it void.
The way most are using the LLC it would be easy for a average lawyer to break the protection. Makes some people feel better because a little more work to get to the assest. But a lawyer wont care chargeing for a few more hours to get thru the LLC for the payoff.
Would also like to add I at first, like most thought was a great idea. I even went ahead and setup 4 LLCs while I was doing my research.
Ended up closing the LLCs before transferring properties after I had done a lot of research. Like a lot of things you at first only hear about the pros.