🏢Buying property with an LLC provides asset protection and can offer tax benefits.
💰Financing options for purchasing property with an LLC differ for traditional and community lenders.
📝Ensure that your purchase and sale agreement leaves room for LLC closing if necessary.
🔒Maintain transparency by using your own name or a Wyoming/Delaware LLC when closing.
📜Obtain a certificate of good standing within 30 days of closing to avoid delays.
What are the benefits of buying property with an LLC?
—Buying property with an LLC provides asset protection and potential tax advantages. It separates personal and business assets, limiting personal liability and allowing for potential tax deductions.
Can I use financing to purchase property with an LLC?
—Financing options for purchasing property with an LLC differ depending on the lender. Traditional lenders like Freddie/Fannie loans may require closing in your own name. Community lenders or portfolio loans may allow closing in the LLC.
What should I include in my purchase and sale agreement if I plan to close in an LLC?
—To leave room for LLC closing, include language like 'and/or designated entity' instead of 'and/or assigns' in your purchase and sale agreement. This indicates that you may close in an LLC based on advice from your tax professional or attorney.
Should I use a nominee manager for my LLC?
—Using a nominee manager can create title issues and complicate the closing process. It's recommended to set up an LLC with your own information as the member or manager. Alternatively, consider using a Wyoming or Delaware LLC for anonymity.
Do I need a certificate of good standing to close in an LLC?
—Yes, it is typically required to provide a certificate of good standing within 30 days of closing. Contact the Secretary of State where your LLC is registered to obtain this certificate.
00:00In this video, Clint Coons discusses the process of buying property with a limited liability company (LLC).
01:00Financing options differ depending on the lender. Traditional lenders may require closing in your name, while community lenders or portfolio loans may allow closing in the LLC.
03:40When closing in an LLC, ensure you have your name or a Wyoming/Delaware LLC on the entity to avoid title issues. Also, obtain a certificate of good standing within 30 days of closing.
