Putting a property into an LLC

[TyaKym Echols]

How do you add a property to an LLC without having the consequence of the due-on-sale clause? Is it only possible to add a property to your LLC if you've paid off the loan?

[David M.]

@TyaKym Echols

Here read this thread for example:  https://www.biggerpockets.com/...

Try this one for basics on LLC's: https://www.biggerpockets.com/...

Like with anything, after you close you can just quit claim deed the Title.  If the holder of the Note catches on that the owner changed and wants to call in the clause, they will.  But, with the Notes being pkg'ed and sold off in bulk and if you are making the payments, there is little reason for them to execute the clause.  Just be because its there doesn't mean they have to use it.  And honestly, the "basically simple" solution if the clause is called in for some reason is just refinance...

As the above referenced thread says, you reallly need to protect your corporate veil. Its a legal function, not a lender function (who I don't believe has a fiduciary responsibility to you anyway). Look at this thread where further down the OP even said realized that if they had to do it again they wouldn't have used the LLC structure. They thought they were doing it right, but actually messed everything up: https://www.biggerpockets.com/...

Poke around BP, even as hard as it now with this new layout. The LLC question comes up multiple times a day. I think people are trying to make money selling it.. But, many investors will use homeowner's insurance, maybe an umbrella insurance policy, and keeping their properties in good repair. Definitely to start, and many investors have said they are doing to with 20, 30, and even 50+ properties.