Bought properties under personal name now moving to LLC

[Mohan Deep]

Hey BP community - I bought some rental properties under our personal name and now as part of the estate planning process, I am reading/hearing that I should move these properties to an LLC and move that LLC into the trust. I know that changing the ownership in City Tax Records is relatively straightforward but I did take conventional loans on these properties.

I am concerned that the bank may have an issue with me changing the title in city tax records from my personal name "John Smith" to "JS LLC"? At the same time, I am sure I cannot be the only one in this predicament, and wanted to ask you all out there to see how you have managed this situation? Thanks in advance!
    

[Jason Wray]

Mohan,

You might want to look at your lender agreement because majority of banks/lender do not allow the property/title to be held in an LLC. I have seen sucess with investors using an attorney to fill out legal documents with county/title to meet certain requirements. Although Each state/county is different on how they manage their departments.

Best way to handle this is to use a DSCR program next time to buy a rental. You can also refianance using a DSCR program to take cash out and again close in the LLC/trust. You still sign a persoanl guarantee they just allow the title held in the LLC for risk/liability reasons.