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Updated almost 2 years ago,
Placing Property into LLCs for Asset Protection
Hello all, Have a handful of properties all with conventional financing. I've created operating agreements, created and filed the Certificate of Formation, and created bank accounts for each property. I've also transferred the title at the Registry of Deeds from my name into my LLCs name. The last step I would think is to transfer the Home Insurance policy over to the LLCs name as well -- Would this create any red flags for a lender typically? I know they usually don't check the Registry of Deeds and don't run title searches (unless you stop making payments), but I am concerned of the "Due on transfer" clause where if ownership changes, you would be asked to pay the note in full immediately.
Any one have experience with bringing your properties financed with conventional lending into LLCs?