Determine how you will acquire money to purchase the property. If you are buying the property with cash, placing the property in your LLC should be easy: any LLC should be able to acquire property. If you must obtain a mortgage using the property as collateral, however, a lender may take issue with your titling the property in your LLC. Stringent lender requirements may restrict the capacity of your LLC to borrow money, particularly if the members refuse to personally guarantee the loan.
Create the LLC if it doesn’t already exist. The LLC may be formed in any state, even if the property you are acquiring is not located there, usually by the filing of articles of organization or certificate of formation with the secretary of state’s office where created. Typically, real estate investors will form one LLC for each property and name the LLC by using the property address.
Apply for a loan. Mortgage lenders will rarely extend a loan to a business without an extensive credit history. You will most likely need to take out the mortgage in your own name and assume personal liability for it. If you plan to deed the property to your LLC after obtaining the mortgage, check whether this is allowed: lender consent may be required, or the lender may allege that you have activated the due-on-sale clause set out in your mortgage, which means that all amounts are due and payable in full.
Obtain the financing, and then after closing the transaction in your name, deed your property to the LLC -- again, only if your lender allows it. If you took out the mortgage in your own name, you are still responsible individually for the debt, and the property will remain subject to the mortgage you made as an individual.