Due on Sale Clause

[Erick Caffarello]

Greetings,

I'm looking to put my properties into a trust / LLC to protect my personal assets if I should be sued. I was recently made aware that this may trigger the due on sale clause. I will still own, operate, and manage the properties. Can anyone help me with preventing the due on sale clause?

Thanks,

Erick 

[Jason Hirko]

@Erick Caffarello If your loan has that clause, it is not likely to be changed unless you refinance into a new loan. What you can do if you are concerned about being sued if create an LLC that handles all the management of your properties, but has minimal assets. Have an attorney set it up for you and create management agreements between the LLC and you. Any agreements with tenants are between them and the management company... And then get a good umbrella policy just in case.