Series LLC vs. Trust-Owned LLC – How to Handle Deed Transfers

[Mohit Arora]

I live in Austin, TX, and own few rental properties. Recently, I created a Series LLC with separate DBAs (per advice from my CPA), but I haven't done the deed transfers yet.

My main concern is the due-on-sale clause – if transferring the deed to the LLC triggers an issue with my lender. I asked my CPA if I should check with my mortgage company before transferring the deed, but they advised that I just do the transfer through an attorney and not explicitly inform the bank.
A few attorneys I consulted also had mixed responses, saying it may or may not be an issue, and that many investors do it without problems.

Instead of transferring the properties directly to the LLC, would it make more sense to:
1.  First create a trust (revocable )
2.  Make the LLC the owner of the trust
3. Transfer the properties into the trust, instead of the LLC?

This way, the lender wouldn't be triggered (since most allow transfers to a trust), but I'd still have the benefits of an LLC.

Other options 

a. Should I go ahead with the deed transfer to the Series LLC and deal with lender issues if they arise? one property at a time.
b.  Should I set up a trust first, then move the LLC and properties into it?
c. Should I cancel the LLC entirely and just rely on umbrella insurance?

Curious how other investors are handling this. Would love to hear what’s worked (or not worked) for others. Thanks!

Regards,

Mohit