Transferring property to an LLC

[Jake Lipowski]

Hey everyone, I was listening to the recent podcast episode with Pace Morby on creative financing and he mentioned something I had never heard of before. It was about getting an insurance policy to protect you in case the bank calls a loan from the "due on sale" clause. I have a couple properties in my personal name that I want to transfer into an LLC that I am in the process of setting up. I know that I can quit claim the deed into my LLC pretty easily but worry that if I do, the bank will call the loan due since the mortgage is in my personal name. Has anyone had experience with this before or knows that this is possible? Does it work the same as if it was done from one seller to another and do these types of insurance policies cover the above scenario? I know the policy itself would be an added expense but Pace mentioned the premium is usually about 1% of the loan value. For the peace of mind, that's a cost I'm willing to pay. Anymore insight on this would be greatly appreciated. Thank you!