Wrapping rental property in LLC

[Mathew Fuller]

Hello BP,

My girlfriend is turning her house into a rental property, and I suggested based on a few real estate books that I have read that she get with a lawyer and have her house wrapped in a LLC for asset protection. My only concern is the bank potentially calling the loan due since in these books they disclose that this can potentially happen. The lawyer she's talking to says this is a possibility but highly unlikely, should I be concerned? If this were to happen, could we just reverse the LLC? What are the potential consequences of this? I am trying to do the right thing and have my girlfriend protected, but I also don't want to break any rules. This is the first time I have been through this, and I will be looking to do the same to my house in the coming months when I turn it into a rental as well. Is this a valid concern I have? Are there any other red flags doing this that I should be aware of? Thank you.