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Updated over 4 years ago on . Most recent reply

User Stats

7
Posts
1
Votes
Robert Lemley
  • Rental Property Investor
  • Pensacola, FL
1
Votes |
7
Posts

Closing in personal name, then switching title to LLC.

Robert Lemley
  • Rental Property Investor
  • Pensacola, FL
Posted

Hello BiggerPockets, 

My name is Robert,I am new to real estate investing, and I am starting out with an LLC due to other investors working with me. The local loan officers that I am working with are saying that they do not close loans in an LLC name, and they can switch the title in the name of the LLC after we close.

My concern is triggering a "Due-On-Sell" clause and that the life of the loan will be under our personal names and not the LLC.

-Does this open us to up any liabilities if we get sued? 

-What are some things to look out for during this process? 

-Would this cause any problems with insurance? 

I am just getting started, and I don't want our other assets to be at risk. Thank you, any advice would be great.

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