Home Buying in California>Question Details

Superman, Home Buyer in California

Can I buy residential property under my LLC? What are the tax ramifications? Can I live in it?

Asked by Superman, California Tue Aug 19, 2008

This pertains to California. If so, does the mortgage count as an expense?

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You could not get a conventional, fha or va mortgage buying the property with your LLC. You would have to get e private or portfolio mortgage and pay a much higher interest rate.
1 vote Thank Flag Link Fri Dec 30, 2011
Yes I believe you can buy property in the name of your LLC. The problem we have had is that we are locked out of obtaining the best financing. (FHA & other programs, as most of these needs to be held personally) The banks we use allow it but make us sign personal guarantees for all of our property effectively reducing some of the effectiveness of the LLC.
0 votes Thank Flag Link Fri Dec 30, 2011
Clearly , the Agent and Broker do not understand the law- Read this article. You can take it under LLC and take expenses along with having privacy, as aways consult a Attorney and Accountant

How does the New Mexico LLC compare to Nevada Corporations or Delaware Companies?

0 votes Thank Flag Link Fri Dec 30, 2011
An LLC can purchase property, but the managing signators will be personally responsible for the debt.
0 votes Thank Flag Link Thu Oct 2, 2008
Hello Superman. You should check with your loan agent. The lender will most likely not want to give a loan to an LLC, at least not without a personal guarantee. You may be able to buy it as an individual and then put it in the name of the LLC later, but you want to make sure that the transfer into the LLC's name does not trigger the due on sale clause. Frankly, I am not sure why you'd want to put your personal residence in the name of a LLC. What is the nature of the business that you conduct in the name of the LLC. Do you have an LLC just for the purpose of holding real estate or is there another business purpose. I know that investors like to hold their properties in an LLC because they don't have to pay the 3.33% taxes at the close of escrow, which means that the money is available to them for other investments until tax time. As far as the tax consequences as a whole are concerned, you should really consult with a CPA who can guide you and tell you what the tax benefits and/or disadvantages might be.
0 votes Thank Flag Link Tue Aug 19, 2008
HI, you seem educated on this subject. I would like to sell my home in Arizona and crete and LLC. I would then like to purchase a home in California under the LLC. The purpose of this would be because my daughter's ex boyfriend went to prison for trying to kill her. Most of my family has moved out of the state. I would not like my name to be traceable through public records on a house. The LLC would serve no other purpose. Please tell me your thoughts. Thank you
Flag Wed Jan 30, 2013
Ute Ferdig -…, Real Estate Pro in New Castle, DE
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