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Updated over 17 years ago,
LLC issues
We have established that to truly protect ones assets, one needs to hold all rental properties in a LLC. D/B/A is not the same thing. This gives the property owner no protection. How should a new investor approach this situation?? Should the LLC be set up before a property is purchased?? Should the LLC be in my name or with my wife?? Since I will be using a lender, won't I be REQUIRED to sign my loan documents personally?? If that is the case, won't I then have to transfer the property(s) to the LLC? Won't that then trigger the "due on sale" clause on the loan? And finally, is it a problem if my wife and I both sign the loan documents on the property(s)???
Thanks so much, sorry for all the questions!
Chaz.....