Home Buying in Phoenix>Question Details

Taza Guru, Home Buyer in Sunnyvale, CA

Can I put my financed home under LLC or Incorporation?

Asked by Taza Guru, Sunnyvale, CA Wed Nov 30, 2011

I am seeing some of the sellers we are buying home from, although they have debt on the home, are listed under LLC. I am wondering can somebody put the homes financed in their names under LLC or Incorporation? If yes, how to structure this for the lender (Bank) and what are the upsides or downsides?

Appreciate your help!

Help the community by answering this question:


I would suggest you contact a tax attorney or CPA.
1 vote Thank Flag Link Wed Nov 30, 2011
I was wondering the same thing, as I live in NJ but I am purchasing a second home in Carmel, California. I cashed in stocks last April and I am purchasing the home with cash (no financing). My wealth management advisor told me that as far as tax write-off, I am able to purchase my home under my company LLC only because I am paying cash for it. She said that it is much more difficult to purchase under an LLC when you are financing. Not sure if this helps you or not! Dana Vigilante, Nutley, NJ
0 votes Thank Flag Link Wed Jun 24, 2015

This is a CPA/Attorney question as stated well by others below.

My experience has been that if paying cash they can often enter the entity directly but with financing the property is purchased as an individual so you can get the loan and then title is moved into the entity. The loan has stayed personal to the individual in the situations I have been exposed to.

Again, very specific rules and regulations surrounding the scenarios that require the legal/CPA help so that you do this correctly.

The scope of LLC or Incorporation does not fall within the Real Estate License area of knowledge. I shared my experiences with others but yours may be different.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Wed Nov 30, 2011
Yes you can. In AZ it doesn't change your liability to the lender just helps protect you..even then you would want to have your attorney or CPA talk to you about the other steps you would need to take.
All my investments are LLC's or trust.
Chat with your broker to get you a good referral.
Happy investing
Web Reference: http://bradbergamini.com
0 votes Thank Flag Link Wed Nov 30, 2011
There are a number of considerations. If you are buying the property, the deed will need to be in the name of the entity on the loan. So if your LLC can qualify for financing, you can put that property into the LLC.

If you are buying the property using a loan in your name and then you move the property into an LLC, you may
void the title insurance, you may trigger a due on sale or transfer clause in the underlying note, or other significant adverse consequences.

In order to know how to structure this type of deal, you need to consult an Attorney, a CPA, a Title Agent, a knowledgeable Finance and Real Estate professionals.

Fred Shocklie
Web Reference: http://www.morechoices.net
0 votes Thank Flag Link Wed Nov 30, 2011
The more important point, in my mind, is that you are not able to move the loan into an LLC. Thus, while your LLC may own the property, you personally are still responsible for the loan.
Web Reference: http://DavidRoney.com
0 votes Thank Flag Link Wed Nov 30, 2011
I am a CPA and yes you,but you should never put real estate in a corporation.

Use an LLC or LLP.
0 votes Thank Flag Link Wed Nov 30, 2011
And I second Sally's advice. Your question is very heavily loaded on the legal/tax side of the world, not so much on the real estate side.
0 votes Thank Flag Link Wed Nov 30, 2011
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