Denver Investment Real Estate

Denver Investment Real Estate


#98: Should I Put My Property In An LLC?

July 23, 2019

"Should I put my property in an LLC?" is one of the most common questions. There is not a simple yes or no answer.

So I've got two experts here with me today:

* Joe Massey, Senior Loan Officer at Castle & Cooke Mortgage* Peter McFarland, Senior Business Advisor and lawyer at the Business Innovation Group

We discuss the three main ways for putting properties into LLC's:

* Get a loan in your name and hold the property in your personal name* Get a commercial loan in the name of an LLC* Get a loan in your name, and after closing, transfer title to an LLC.

We discuss the pros and cons of each option. Plus we go down some rabbit holes to dive into the details.

Listen to the podcast, watch the YouTube video or read the transcript below (there are some transcription errors!)

Connect with the Presenters

Finding properties: contact Chris Lopez at chris@Denverinvestmentrealesate.com or schedule a consultation with him to create your investing strategy.

Lending: contact Joe Massey at jmassey@castlecookemortgage.com or ‭(303) 809-7769‬

Legal and entity creation: contact Peter McFarland at pmcfarland@longlg.com or ‭(720) 922-1120‬.

Roundtable Video

https://youtu.be/01AG8i-Zlbw

Transcription

Chris Lopez: Hey, everyone. Chris Lopez here, and today we're doing a short educational segment on one of the most common questions, and that is, should I put my property in an LLC? That's not a simple yes or no answer. There's a lot of pros and cons and a lot of things you've got to take into consideration. I've got two experts here with me today to talk about those pros and cons and things that you need to keep in mind. The first is Joe Massey, who is a Senior Lender at Castle & Cooke, so Joe, good morning.

Joe Massey: Good morning, Chris. Always great to see you.

Chris Lopez: My second guest is Peter McFarland, and he's a lawyer at The Business Innovation Group. Good morning, Peter.

Peter McFarland: Hey, Chris. Hey, Joe.

Chris Lopez: I think the best way we'll go through in doing this is there's basically like three ways people can go through or three options they have when they buy a property, and we're assuming that you're buying a property with a loan to finance it, because that's where things get more complicated you want to talk about.

Option #1: Get a loan in your name and hold the property in your personal name

Chris Lopez: The first option is to get the loan in your name and then hold the property in your personal name. Joe, talk about the loan set on that.

Joe Massey: Sure. Pretty straightforward. This is the way all of our financing works for residential mortgages. Chris, you come to me, you want to buy a property, great. I'm going to ask you some personal questions. Where do you live? Where do you work? Your personal name. You take title in your personal name. We close on the loan in your personal name. A lot of people get nervous about that because you're assuming all the risk. If someone falls, gets hurt, whatever, you're assuming all of the risk in your personal name.

Joe Massey: Now, as a lender,