OfflineI was wanting to know if anybody knows anything about deeding my personal residence into my LLC?
I have about $20k in equity that I can't touch due to my current credit rating. So I thought about deeding my house to my LLC and then using my LLC's EIN# to refinance it and pull out the equity or just use it as collateral for loans to make real estate deals. I would also use it to help establish business credit for my LLC.
Does this make sense?
What are the tax implications for doing this?
Any help would be greatly appreciated.
Rick Merritt
Trident Realty, LLC
Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino
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If you deed your personal residence into your LLC then you won't be able to sell it tax free down the road. Also, if you LLC doesn't have any credit then you will have to personally guarantee the loan anyway which means they will pull your personal credit as a way to refinance the home. The only advantage to doing that would be asset protection in my opinion and with only having $20k in equity no attorney would pursue a lawsuit so even asset protection doesn't make sense. My question is this. Why do you think a bank won't give you a loan on a house? I know people that are getting investor loans right now with credit ratings in the upper 500's.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
CBR wrote: Why do you think a bank won't give you a loan on a house? I know people that are getting investor loans right now with credit ratings in the upper 500's.
That is interesting Matt.
I'll just keep plugging away until I find the right strategy.
Thanks for responding.
Rick
Rick Merritt
Trident Realty, LLC
Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino
Get your very own 1-800# at a great rate. Just click here:
http://www.itelecenter.com/COAPhoneSolution?referredby=8662684543
Check it out. Now you can set up your own 24 hour messaging system!