LLC Question

[Bradford Myatt]

Hey All,

I will be closing on my first SFH next week and purchased it with a residential mortgage. At the advice of my attorney I formed an LLC to protect my personal assets as I continue to grow. After speaking with the bank I was informed that since this was a residential mortgage I can not instantly place this property into an LLC. The bank said I would have to apply for a commercial mortgage, which increases the interest rate, appraisal, and closing costs. Has anyone had any experience placing properties into an LLC? What is the best strategy to continue with this? Any advice is appreciated.

[Steve Vaughan]

Don't forget to amend your hazard insurance policy.  If the beneficiary and the owner of the property aren't the same, you may not be insured at all.  How's that for 'sophisticated' asset protection?  Please read up on the pitfalls of trying to protect residential property inside commercial entities.