Home Buying in Yonkers>Question Details

l.mercuri, Home Buyer in Rockford, IL

Can a home be put in a corp if so how can I do it?

Asked by l.mercuri, Rockford, IL Tue Jan 1, 2013

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Hello. I know for fact in Nevada you can put a home into a corporation. Easiest way for you to find out in your state is by contacting an attorney or a local title company, or a local Realtor who is not afraid to answer your questions and conduct research if they don't know the answer.

A corporation is it's own entity. The first step would be to own an LLC. If you already own the property, a transfer tax, capital gains tax, etc. will likely apply. If you're looking to purchase a property, make sure that all of your offers are written with the LLC as the buyer, not yourself.

Question for you, what is your reason for putting a property into an LLC?

If you're looking to simply protect the title, you may consider an irrevocable trust. You can avoid double taxation and headaches of an LLC this way, and still protect your asset.


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0 votes Thank Flag Link Tue Jan 1, 2013
You really should be consulting with your attorney, don't just rely on online information...
0 votes Thank Flag Link Tue Jan 1, 2013
As an agent, not a lawyer, it's absolutely possible to own a home under a corporate name.

You should research LLC's and definitely talk to a lawyer (I've got some names for you if you like).

Usually, the smartest use of an LLC happens if you're an investor. For example, a New York City co-op will generally prefer to deal with a buyer, because the buyer retains liability (and accountability) if something goes wrong.

However, if you're investing in real estate to diversify your portfolio, it is really smart to look into LLCs; in fact, you can use certain types of self-directed retirement accounts to invest in LLCs. This is not for everyone, and of course, there are very strict laws regarding co-mingling of funds (any profits go back into the retirement account, and cannot be used personally unless you go through a lot of red tape and IRA rules), and you have to be very careful regarding who is living there. But a self-directed retirement account that allows you to invest in LLCs has the potential to help you grow your retirement account in a significant way, whether your goal is to invest in your own properties or finance other investors' projects. As a private investor, you can loan money at a higher interest rate than the buyer would otherwise be able to access, whether because they have poor credit, lower-then-required income, or some other reason. You can make a loan at a 7-15% interest rate, based on what the buyer needs and how quickly they plan to pay it back.

Here are links to two articles about this topic. The first is from 2009, so you want to check current laws. The second is pretty current:

http://moneygirl.quickanddirtytips.com/real-estate-in-IRA.aspx
http://www.realestate.com/advice/flipping-inside-an-ira-part…

Let me know if you have more questions or are looking for property; I primarily do business in NYC, but can easily refer you to someone who specializes in this kind of thing.

Good luck!

-Kate-
Douglas Elliman Real Estate
0 votes Thank Flag Link Tue Jan 1, 2013
I agree with Tim, This is a question for an attorney, NOT a real estate broker
0 votes Thank Flag Link Tue Jan 1, 2013
Do a search for LLC's or speak to a lawyer to find advantages and disadvantages of doing this. Investors do this more than individuals, in my experience. It is more of a legal question not suited for Realtors to answer.
0 votes Thank Flag Link Tue Jan 1, 2013
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