Posted by Jim on April 05, 2009 at 09:40:11:
If you purchase the property and sell it to the LLC, you will probably have to pay transfer taxes on the sale. Check with your real estate attorney.
You should form the LLC now and have the LLC buy the property. However, you may have trouble getting financing if the property is titled in the name of an LLC, so line up financing first. Things have changed drastically in the world of financing for investors and as a result some friends of mine have had to take properties out of their LLCs in order to refinance them. Attorney’s fees and transfer taxes on such transactions are expensive and should be avoided by planning ahesd.