How can I buy a property on my name and transfer it to a company ?

Question

I am planning to make an investment in a two family house in NJ. I beleive it makes sence to do it under a companies name. The problem is I will get the mortgage on my name purchase the property. How does it techniclly work to transefer the property under a company. Is it worth? Can somebody help me.

Answer 1

as far as i know, the company will have to get a loan to purchase the property. (unless you have it paid of and then transfer it free and clear).

to get a loan for a company, you had better be able to show them years of receipts, tax statements, or other means of assuring payment.

you could buy the property and rent it to the company. several tax advantages and protections for this. However, you are ultimately still responsible to make sure the mortgage gets paid.

Answer 2

You should probably talk to an attorney and/or an accountant.

If you want the company to own the land, then the company should probably buy it.

You can't just transfer a valuable asset from a person to a company without having the company pay for it or set up a payment plan. The accountants and the tax authorities won't allow you to co-mingle and confuse the assets of the two bodies, they have to keep accurate and clear records.

Answer 3

Assuming that you are aware of the tax and legal ramifications of what you're doing, you could transfer the house into a trust. That way you don't invoke the due on sale clause. Then you have the trust make the mortgage payments and place the trust under your entity.

Regards