Residential Property Management/Deeding to an LLC

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Question
When purchasing a rental property using a mortgage under my name, how long do I need to wait after closing to transfer the deed to an LLC?

Answer
There's no hard and fast rule on that, but you may encounter one or both of the following issues:

Lender:  Your loan could have a due-on-sale clause, which would allow the lender to call the loan due in the event of an asset transfer. Of course, this is if the lender finds out, which may not be the case, but it is worth mentioning. You could also let the lender know and they may allow it, so long as you would personally guaranty the note.

Property Taxes:  Here in California, many property transfers will cause the property to be reassessed by the tax collecting agency, which could cause the property taxes to increase beyond any protections in place (such as the Proposition 13 laws we have in our state). This may not be applicable if your property is in a different state.

Residential Property Management

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Mike Fortunato

Expertise

Very familiar with all aspects of property management (tenant/landlord issues, lease administration, facilities maintenance, financials, etc). 25+ years in property management

Experience

I have been in real estate management for 25+ years, both residential and commercial properties. Currently own and operate a commercial and residential real estate management company in southern California.

Organizations
IREM; BOMA; MLS; National Association of Realtors; California Association of Realtors

Education/Credentials
CPM (Certified Property Manager) and RPA (Real Property Administrator)

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