UNABLE TO LLC

[Kimar Abdul-Samad]

The reason is because its a Fannie Mae property I have to have the contract in my name. I spoke with an attorney that told me that the only way to transfer it into my LLC is to default the loan. This doesn't sound like a good option for someone planning to get additional loans. It has mild lead issues which I am addressing. The lawyer also told me that a lead free certificate won't necessarily offer me protection against liability and that having the property in my name is not a good idea. After some thought, I've come to the conclusion of paying the property off within ten years, then transferring it into LLC. What are my chances of facing liability within ten years? And is this a good plan of action? If not...any other suggestions?? Btw, the property is in MD

[Bryan O.]

Default the loan? Sounds like a bad idea to me. Many people quit claim deed into the LLC name and then hope the bank doesn't accelerate the note. I don't necessarily recommend that, but it is an option. That aside, I would look into getting an umbrella policy. That should cover your risk until you have shifted the property into the LLC. They are not expensive and can be set up in minutes. I think I pay $15/month for mine.