Hi @Franky Juwana, It would depend upon how you structure the SMLLC ownership. 

I want to add him to 50% ownership so we can both manage the property and access the cash flow.

You will work directly with the title company to ensure all legalities and documentation are correctly executed and recorded. 2) You will work with a title company for the transfer of ownership and they will collect the money accordingly and hold it in an escrow account until closing, where they will disburse the proceeds of the sale at closing by check or wire. 3) - The buyer not depositing the EMD on time    - Too long of an inspection period where they can back out anytime without risk

The mortgage remains in the seller’s name, but the buyer gains ownership of the property and makes the payments.Risk: This can trigger the Due on Sale Clause, so it’s essential to understand the risks and have a plan in place if the lender calls the loan due.Wraparound Mortgage (All-Inclusive Trust Deed - AITD):Definition: A wraparound mortgage involves creating a new mortgage that "wraps around" the existing one.

I have to assume this is a situation many others have found themselves in before and so I'm hoping there could be some clear guidance on process and legality.Situation: There's a prospective landlord in San Francisco with no next-of-kin and no social ties to name a recipient to transfer ownership of their property to after they pass away.

Thanks for reading.Any transfer of ownership in any way will kick in the so called due on sale clause, so you and the investors will have that risk to deal with.  

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Here are some options and considerations:Loan Against Equity/ETFs:Margin Loans:Description: Margin loans allow you to borrow money using your investments (such as stocks or ETFs) as collateral.Pros:You retain ownership of your investments.Generally quick access to funds.Interest rates can be relatively low compared to other types of loans.Cons:Your investments are used as collateral, so if their value declines significantly, you may face a margin call (requiring additional funds or securities).Interest rates can vary and may be higher than traditional loans depending on the lender and your creditworthiness.Securities-Based Line of Credit (SBLOC):Description: Similar to margin loans, SBLOCs use your securities (stocks, ETFs) as collateral, but they typically provide more flexibility and may not trigger margin calls as easily.Pros:Allows for ongoing access to funds as long as your collateral remains sufficient.Interest rates may be competitive.Cons:Similar risks of potential margin calls if the value of your securities drops significantly.Terms and interest rates can vary widely among lenders.Comparison with 401(k) Loans:401(k) Loans:Description: Borrowing from your 401(k) allows you to access funds without selling investments, using your retirement savings as collateral.Pros:Typically low interest rates.No credit check required.Interest paid on the loan goes back into your 401(k) account.Cons:Usually capped at a percentage of your vested balance (commonly up to 50% or $50,000).If you leave your job, the loan may need to be repaid immediately or could be considered a taxable distribution.Potential opportunity cost of missing out on market gains if funds are withdrawn from investments.Other Alternatives:Home Equity Line of Credit (HELOC):Description: If you own a home with equity, a HELOC allows you to borrow against that equity at typically lower interest rates than unsecured loans.Pros:Lower interest rates compared to other types of loans.Interest may be tax-deductible if used for home improvements (consult a tax advisor).Cons:Your home serves as collateral, so failure to repay could result in foreclosure.Personal Loans:Description: Unsecured personal loans can be used for various purposes, including investing, but typically have higher interest rates than loans secured by collateral.Pros:No collateral required.Funds can be used for any purpose.Cons:Higher interest rates and stricter eligibility criteria based on creditworthiness.I am a loan officer and we do some of the loans stated above.

home ownership is a privilege not a Right. 

Would I have to transfer ownership of my rentals to these LLC’s?