Do You Have Experience Transferring Ownership of a House to LLC?

[Joshua Sokolow]

Hi BiggerPockets community,

My friend and I are going to close on our first property (4-plex) together and we're wanting to transfer the ownership into an LLC. In the future, we'll have another investor come in on this property as well. I've read a bit about notes being due by banks because of breaking the due-on-sale clause. Is this one of those cases? Do we need to go ahead and get a real estate attorney?

Any direction and guidance on this issue would be really helpful.

[Dan Barli]

I would recommend you consult a real estate attorney where you are buying the property @Joshua Sokolow. If you are getting a personal mortgage on this 4-plex and after closing you transfer the ownership into an LLC, then you can trigger the due-on-sale clause. If you are getting commercial financing, then you will be putting it right into the LLC from the outset.