Can you BRRRR into an LLC?

[Mark Rocka]

I keep hearing and reading that moving a house into an LLC can trigger a "due on sale" clause of a typical mortgage. I got to wondering, what if I buy a house for a BRRRR strategy directly into an LLC with cash? Would a bank then loan the money to that LLC for the refi?

It seems like that would be an easy way to get homes into an LLC without risking the banking coming for its loan, but I'm a complete newbie, so I don't know what I don't know.

Thanks for any advice!

[Nicholas Covington]

@Mark Rocka @Justin K.

The title company is not the bank. If they bank holds the loan then sometimes they do not care. You would have to ask them. Sure title companies see it all the time but they are not responsible nor would they really know if the loan is called. Are they always called? No. But they can be. Unless they specifically sell the loan to "Fannie Mae" not Freddie, but Fannie, you are at risk for loan to be called in full. "Fannie Mae" allows for transfer to LLC after closing. And I repeat LLC, not a S Corp, C Corp, series, but LLC. If you choose to refinance this same loan after you move it your LLC you will have to move it back to your personal name first. Fannie Mae does NOT allow you to close in the name of a LLC period. They just allow you to change vesting after transaction.