LLC

[Jaime Botello]

hello,

I currently have two rental properties and I would like to set up an LLC to which I can transfer both properties via a quit claim deed. I have heard that in some cases the bank asks for the loan balance to be due in full once the transfer has been made. Does anyone have any experience with this situation and can you please let me know if this is the case?

[Jesse Waters]

I have transferred all my deeds from my personal name to my LLC. When I purchased the properties I told the loan officer that I was going to do this, they didn't seem to mind, since it is an entity that I own. Check with your insurance company to see if you will be subject to a rate change. My insurance company didn't change the rates, they just added the LLC as an additional insured.

From my understanding, the bank's don't get too wrapped up on this since A: they are still in first lien position on the property, B: you still hold the mortgage and C: They can foreclose on the property if you quit paying.

I would ask anyone that knows anything more to let me know if I am off basis.