All Forum Posts by: John Franklin

Short answer is that I'm not sheltered. I'm not an attorney so I'm not a pro at all of this, but I've heard that even if it's in an LLC they can still come for everything. You must set it up in a proper way in order to reap all the liability protection benefits.

I'd check with an attorney in your market to help make that decision. It would be different depending on whether you're wanting to transfer to an LLC for tax purposes, asset protection, etc. I have a mix of properties that are still held in my personal name vs properties that were bought and held through an LLC holdings. We got attorney advise for our specific situation and decided to just keep the properties in our personal names and set up a property management LLC that we run all of our rental income and expenses through. Also we have lots of insurance and umbrella insurance coverage.

A lot of people still just keep them in their own name. My properties are kind of a mixed bag of LLCs and my personal name. If you wanted to put it in an LLC you can typically just do a quit claim deed. You probably have a "Due on sale clause" in your loan agreement and technically transferring it to an LLC could trigger that, but it rarely happens. Let me be clear though, it could.

Basically, anytime you see a residential property owned by an LLC it means this happened as there are few lenders willing to give a residential mortgage loan to a business unless that business has a credit history.