Business Trust or Asset Protection Trust for holding Rentals

[Diane Tycangco]

Hello everyone, has anyone used a business trust to hold rentals instead of an LLC because California charges a yearly FTB fee of $800 whether or not your LLC was formed in California? Or maybe a Tennessee Asset Protection Trust? I have talked to a couple of lenders and they have told me that if I transfer the property into an irrevocable trust, it would trigger a due on sale clause.

Have any of you encountered this and how did you avoid the due on sale clause? 

Also, how did you get a mortgage when buying a rental in a business trust or asset protection trust? 

Does transferring your real estate in an asset protection trust trigger property tax reassessment?

Is it harder/more expensive to get insurance in a business trust or asset protection trust? 

Thanks!