All Forum Posts by: Ryan Bird

@Peter M. Thanks for the reply. That totally makes sense. 

You're right LLC is not well established so I have to sign a personal guarantee anyways. Worst case scenario - If bank calls it, I wanted to see if 30 days is enough to switch to commercial? I would have tenants living and don't want to make disruptions for them so wanted to take any proactive steps today (may be pre-approval for commercial now?) in case the bank gets strict.

@Stephanie P.

I had an informal conversation with the manager. They said official policy is due on sale similar to any other lenders. He mentioned that they rarely exercise it but of course won’t give anything in writing. I want to prepare for the worst case scenario if the management changes or something.

My long term plan is to have this on llc. Is it better to convert this to commercial loan now?

I have deeded a property to an LLC so LLC is sole owner in the deed but mortgage is still in my name. Planning to rent the property out.

Who should be the -> 

1. Name Insured?

2. Additional Insured? 

3. What all are the different policies I should take for the llc and myself for property/liability coverage?

Any insights would be helpful. Brokers are giving me different recommendations - some saying title owner needs to be the name insured. Few others are saying mortgage owner needs to be named insured and otherwise the bank won't agree.

From previous posts I read that due on sale is very rare but real. Now that I have quit claimed the deed to an llc , which is 100% owned by me, what are the remedies/proactive steps I could take now if the bank calls the loan next month (ie. when my insurance changes and bank gets notified if not already via deed transfer) ?

-> Deed it back to my name?

-> Transfer to commercial loan within same bank

-> Get a commercial loan from another bank in 30 days and close the original loan? (Is this possible in 30 days and if so, should I start pre-approval or something now?)

-> Anything else?

Apologies for the error in the post - I meant to say name insured vs additional insured

Today it's - me as name insured with llc as additional and deed is in LLC's name

After one month - LLC fire dwelling policy starts

I had quit claimed my home so deed is in the name of llc. I need to stay here for one more month before tenants move in after which llc dwelling policy kick starts.

In the mean time my insurance agent said they will add llc as additional insured but will still keep my name as first insured. Is that okay?

If not, how to address the gap for one month? Would agent be able to write one home owners with llc as name insured and then covert to dwelling policy for tenants after a month?

I signed a leasing contract under my name. I now want to change it to llc name. I’m sending an updated contract with llc name.

Will this automatically cancel old contract with my name on it? Wondering how do we officially terminate a contract that was signed by both parties.

@Jason Bott

That makes sense. Thank you. One clarification

“If you lived there you will get a homeowner with landlord liability”. Insurance agent said that I could keep the existing homeowners and add llc name to it as an additional insured. Is this accurate and the right way to amend existing home owners?

Question regarding insurance - I recorded my deed to an llc. However, I will be living in the property for a month before renting it out. What should changes should I make to existing home owners policy?

I think I figured the renting out part - fire dwelling, liability etc. But for the next month where I’m still living here, Is adding llc as an additional insured to the existing home owners the right way to do? Or do we need a new policy for llc just for one month?

@Jason Bott

Thanks this is helpful.

My question was more around different policies (not coverages within the policies) that we should take

Like fire dwelling, llc liability, personal umbrella etc