Legal Question in Real Estate Law in Georgia

Re: Placing rental properties under an LLC

All of those are issues, but how to take care of them properly is not simple answers. Assuming the LLC was properly formed in the first place, how is the LLC going to pay for the property? What does a transfer mean to your assets and your personal creditors? Will the lender attempt to foreclose for a violation of the due-on-sale clause of your loan documents? Will the lender, or any lender, provide a loan to the LLC ("changing the mortgage" means refinancing)? These answers and the "anything else" you asked for depending on the missing facts. If you want to set it up correctly and avoid issues down the road, see a qualified lawyer and make the initial investment.

Re: Placing rental properties under an LLC

You will need to deed the property from yourself to the LLC and record the transfer. You will need to have a separate checking account for the LLC and run all moneys through it. Regarding your mortgage, it is common for mortgages not to allow ownership change. However, most lenders will allow a transfer to an LLC with the same ownership as the loan. You should have an attorney review all of the facts and advise you on how to proceed. There are many factors that go into making such decisions.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.