How to Buy in Name of LLC (by JJ [MD]) Jul 21, 2015 7:11 AM
How to Buy in Name of LLC (by Kristy [LA]) Jul 21, 2015 7:28 AM
How to Buy in Name of LLC (by JJ [MD]) Jul 21, 2015 7:31 AM
How to Buy in Name of LLC (by Gary G [IN]) Jul 21, 2015 7:36 AM
How to Buy in Name of LLC (by JJ [MD]) Jul 21, 2015 8:08 AM
How to Buy in Name of LLC (by S i d [MO]) Jul 21, 2015 8:15 AM
How to Buy in Name of LLC (by Gary G [IN]) Jul 21, 2015 8:43 AM
How to Buy in Name of LLC (by JJ [MD]) Jul 21, 2015 8:55 AM
How to Buy in Name of LLC (by Ken [NY]) Jul 21, 2015 9:01 AM
How to Buy in Name of LLC (by Gary G [IN]) Jul 21, 2015 9:45 AM
How to Buy in Name of LLC (by Gary G [IN]) Jul 21, 2015 9:49 AM
How to Buy in Name of LLC (by JJ [MD]) Jul 21, 2015 9:57 AM
How to Buy in Name of LLC (by Dan [MA]) Jul 21, 2015 10:44 AM
How to Buy in Name of LLC (by James [MO]) Jul 21, 2015 11:59 AM
How to Buy in Name of LLC (by RathdrumGal [ID]) Jul 21, 2015 1:26 PM
How to Buy in Name of LLC (by Ken [NY]) Jul 21, 2015 1:35 PM
How to Buy in Name of LLC (by Gary G [IN]) Jul 21, 2015 9:40 PM
How to Buy in Name of LLC (by BRAD 20,000 [IN]) Jul 21, 2015 11:12 PM
How to Buy in Name of LLC (by Pattyk [MO]) Jul 22, 2015 3:02 AM
How to Buy in Name of LLC (by Nicole [PA]) Jul 22, 2015 4:44 AM
How to Buy in Name of LLC (by John... [MI]) Jul 22, 2015 7:01 AM
How to Buy in Name of LLC (by John... [MI]) Jul 22, 2015 7:04 AM
How to Buy in Name of LLC (by JJ [MD]) Jul 22, 2015 2:35 PM
How to Buy in Name of LLC (by JJ [MD]) Posted on: Jul 21, 2015 7:11 AM Message:
State Specific Question About: MARYLAND (MD)
Hello everyone,
When I owned rental properties 8 years ago I did it all wrong: all of them in our name, daisy-chaining equity debt which all-but destroyed us when the market crashed etc, was trying to manage properties from out of state -and sometimes out of country!
This time I want to do it right. I'm about to purchase a buy-and-hold with cash. I used the MD online system to set up an LLC as the "buyer."
Question is: how exactly do I buy something in the name of the LLC? When I get to the closing table, do I sign my name on the paperwork? Do I need to go buy an "official stamp?"
Please share your experience and if there's any pitfalls I need to look out for, please share those too!
Thanks,
JJ --214.38.xxx.xxx |
How to Buy in Name of LLC (by Kristy [LA]) Posted on: Jul 21, 2015 7:28 AM Message:
Since you are paying cash, I think you can put the title in any name you want.
Before getting to the closing table, you need to tell your title company what it is that you are wanting to do so they prepare the paperwork that way. If they think it is "Joe Smith" signing the papers, you can't go in and write "Smith Properties, LLC" on the line.
The title company has to prepare and file with the local city/county for tax purposes and therefor will file it as you tell them to prepare it.
If you didn't do this ahead of time, your option would be to sell it to your LLC, but that takes more title work, more time, more money.
Call the title company right away. Or if you have a realtor they could call. --174.70.xxx.xxx |
How to Buy in Name of LLC (by JJ [MD]) Posted on: Jul 21, 2015 7:31 AM Message:
Thanks Kristi - I will contact the title company. The contract says it will be purchased by the LLC and I'll check with them to make sure. --214.38.xxx.xxx |
How to Buy in Name of LLC (by Gary G [IN]) Posted on: Jul 21, 2015 7:36 AM Message:
I would think that if you held enough cash to buy real estate that you would also know how to do this or would spend just a little with an attorney to have it done right.
One good note is that said you will be buying the property with cash! You can not buy real estate with a mortgage and have it an LLC name unless you quit claim deed it to that entity after receiving title in your own name.
To have the property put into your LLC's name, the cash offer needs to be made from your LLC to the seller and you sign as manager. This is LLC 101. --99.132.xxx.xx |
How to Buy in Name of LLC (by JJ [MD]) Posted on: Jul 21, 2015 8:08 AM Message:
Hm, yes, I said I was buying with cash. Not averse to paying a lawyer if I need to. Just want to hear from those who have done it what to do. If lawyer is needed will do. If I can just sign my name as the manager then I'll gladly save that $500.
A lot of "LLC 101 info" out there sounds like it's from people who either never actually did anything with their LLC, people who set up LLC after the fact and then transferred property into it, or people trying to sell services. --214.38.xxx.xxx |
How to Buy in Name of LLC (by S i d [MO]) Posted on: Jul 21, 2015 8:15 AM Message:
JJ,
I have bought and sold 6 pieces of real estate for all cash using my LLC. The Buyer on the contract reads (my LLC's name)...I sign on the dotted line:
My LLC's name
S i d - member
Of course, I used my full legal name, not my Mr. LL "handle", but you get the idea.
If you already have a lawyer you regularly use, you can run this by him/her, but a competent title agent should know the answer if this is how it works in your state. --173.16.xxx.xxx |
How to Buy in Name of LLC (by Gary G [IN]) Posted on: Jul 21, 2015 8:43 AM Message:
Keep in mind, the question is how do I BUY in the name of my LLC! When you add sales into this, the correct answer can be different, but wrong for how you BUY in the name of an LLC.
To have the property put into your LLC's name, the cash offer needs to be made from your LLC to the seller and you sign as manager or member. --99.132.xxx.xx |
How to Buy in Name of LLC (by JJ [MD]) Posted on: Jul 21, 2015 8:55 AM Message:
Thanks S I d, that's what I was looking for. I did use the LLC name on the contracts so I will sign as a member. A friend of mine received an LLC kit with official seal and such which got me wondering if I needed anything more than just my signature as a member.
Now, Gary, what do you mean about sales? Is there something I need to watch out for years down the road if I feel like selling from the LLC?
Thanks Gents,
JJ --214.38.xxx.xxx |
How to Buy in Name of LLC (by Ken [NY]) Posted on: Jul 21, 2015 9:01 AM Message:
When you set up your LLC without the assistance of an attorney realize there are publishing requirements in many states,meaning you have to publish in a certain newspaper or two newspapers in the legal section of the papers to fulfill legal requirements.If you don't do this you will have a hard time when you go to sell the property with whoever is writing title.In my state it is the county clerks job to determine which papers you have to publish in soI would suggest you start there to see if required in your state.I would assume it is a requirement --24.92.xx.xx |
How to Buy in Name of LLC (by Gary G [IN]) Posted on: Jul 21, 2015 9:45 AM Message:
If you buy in the name of the LLC, you will sell in the name of an LLC. People on here always get confused when they want to buy a rental their LLC name but must have a mortgage because they don't have cash to buy.
Ken, I've only had experience in 2 states, and I have NEVER heard of publishing info requirements on any LLC. --99.132.xxx.xx |
How to Buy in Name of LLC (by Gary G [IN]) Posted on: Jul 21, 2015 9:49 AM Message:
I think you can also buy it in a land trust. Selling it is easy, one page document and no requirement to change the deed, just change the beneficiary. --99.132.xxx.xx |
How to Buy in Name of LLC (by JJ [MD]) Posted on: Jul 21, 2015 9:57 AM Message:
That publishing requirement concerns me. The last property I bought in OH (10 years ago) was supposed to be an anonymous gift for one of our church mothers. I was horrified to discover that county was one of those who publishes names of buyers of all properties in the paper. The whole point was to be anonymous!
I never thought to see if this applies to LLCs here in MD. I will check into that. --214.38.xxx.xxx |
How to Buy in Name of LLC (by Dan [MA]) Posted on: Jul 21, 2015 10:44 AM Message:
Gary, not to pick on you, but you can certainly buy properties into an LLC with a mortgage. I do it all the time. Also, the offer to purchase does not have to be in the name of the LLC. It is easier and less confusing if the offer is made by the LLC or made by yourself "or your assigns", but it is not imperative. --64.197.xx.xx |
How to Buy in Name of LLC (by James [MO]) Posted on: Jul 21, 2015 11:59 AM Message:
It would be worth to have a conversation with the title officer and ask her what you will need to close. For instance, it's possible they may want a resolution grating you powers to buy on behalf of the LLC. They may also want documentation from the state that your u are in compliance with state law and have paid any fees that would be due. They may want a copy of your operating agreement. I would want to have the conversation. If you've got a preliminary title report there may be a section on what you need to bring to close. --75.81.xxx.xx |
How to Buy in Name of LLC (by RathdrumGal [ID]) Posted on: Jul 21, 2015 1:26 PM Message:
We set up the LLC when we were looking at properties, and established the business checking account in the name of the LLC. We told the title company that we wanted the LLC to be the purchaser and all the documents were set up that way. When it came time to purchase we wrote a check from the LLC account. Easy peasy. Everything -- insurance, business debit cards, is in the name of the LLC. --204.227.xxx.xxx |
How to Buy in Name of LLC (by Ken [NY]) Posted on: Jul 21, 2015 1:35 PM Message:
Gary,in NY state we have the publishing requirement,any LLC has to publish in the legal section of the papers as chosen by the county clerk.My local paper is full of LLC formation notices every day and it is not cheap. --24.92.xx.xx |
How to Buy in Name of LLC (by Gary G [IN]) Posted on: Jul 21, 2015 9:40 PM Message:
every state is different but I would think mortgage requirement would be the same everywhere. I've bought over many properties with mortgages while I had active LLC's. 14 different mortgage companies and NONE of them would allow me to buy property with a mortgage and put the property in the name of the LLC. All were quit claimed into the LLC after purchase. I've done this a lot in 2 states but could NEVER buy in my LLC with a mortgage. I bought the rest of my properties with cash to be allowed to buy directly in my LLC!
Ken you said your state requires you to publish at the formation of an LLC. That sounds like a one time event. Here in Indiana, only the managing member is known by the public. It costs $90 and you are in business! The managing member could have more or LESS shares than everyone else, he is just the managing member. I wonder if I could give Lucy G. my dog, 1 share and make her the managing member? LOL --99.132.xxx.xx |
How to Buy in Name of LLC (by BRAD 20,000 [IN]) Posted on: Jul 21, 2015 11:12 PM Message:
My tip: never sign with just your name.
I ALWAYS sign 'Brad 20,000 AS MANAGER'.
And
you must operate as an LLC, have minutes from your yearly meeting, and not co-mingle money with other entities or your personal monies.
Many people fail to OPERATE as an LLC and risk losing the protection it offers.
I highly suggest the name of your LLC NOT be your personal name. Simply using a hard to trace name adds a first layer of protection.
BRAD
--68.50.xx.xxx |
How to Buy in Name of LLC (by Pattyk [MO]) Posted on: Jul 22, 2015 3:02 AM Message:
What is it that you are expecting this LLC to do for you ? --66.87.xx.xxx |
How to Buy in Name of LLC (by Nicole [PA]) Posted on: Jul 22, 2015 4:44 AM Message:
I think trying to save $500 by asking internet people, who are mostly in different states, how to sign your name is foolish.
As someone else asked, what is the goal of your LLC?
People spend hundreds of thousands of dollars on real estate and then fail to get $1000 of legal advice ... amazes me.
Also, the title company is NOT who to ask. They aren't your attorney, they don't represent you, they don't know the legalities of what you are doing or not doing. They know "stuff" ... and that "stuff" is in order for them to write the insurance that makes their underwriters and lenders happy ... they may know "more stuff" but it's sure not legal advice.
--72.70.xxx.xxx |
How to Buy in Name of LLC (by John... [MI]) Posted on: Jul 22, 2015 7:01 AM Message:
Pattyk is asking the most important question in this thread. In some states, this is probably a bad idea. I don't know for yours, sorry. Are you aware of what it all means to have it in an LLC when you are a managing member? Does it offer any real protection like you likely assume it does?
- John...
--207.241.xxx.xxx |
How to Buy in Name of LLC (by John... [MI]) Posted on: Jul 22, 2015 7:04 AM Message:
Gary G: I think it is odd that you have 14 banks that won't do a mortgage for an LLC -- but apparently have no problem with the immediate transfer to an LLC through quit-claim after you bought it? Seems like a bank that won't do a loan to an LLC would jump on that due-on-sale clause when you immediately transferred the property to one!
Are you really finding banks that don't like LLCs for loans, but are just fine with you immediately transferring their collateral to one?
Or are you just not telling them to avoid any due-on-sale clause?
Just curious.
- John...
--207.241.xxx.xxx |
How to Buy in Name of LLC (by JJ [MD]) Posted on: Jul 22, 2015 2:35 PM Message:
Good discussion. I don't see the need to be rude about asking for other's experience though... I thought that's what this board was for and I think it's a good first step in the research process. Granted, I should have done the research before getting all excited and buying the LLC (thank goodness it wasn't that expensive).
I will definitely look into the points raised above.
While I do not intend to buy properties with a loan, I am curious about the question asked by the post above: Do those of you who transfer property into your LLC just don't tell the bank you've done so? Does the bank itself not care (but maybe the original underwriter does)? --70.192.xxx.xx |
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