I do not want to be a jr. lender standing in front of a judge with a defense that says that I relied on the senior lender's loan app and qualifying procedures as my qualifying and documentation process.

These situations vary by state and local laws/procedures.

But if you can suggest me other option other than commercial loan to make all procedure easy for us.

Is this the correct procedure?

I thought about calling them and asking the procedure but assumed a state agency would consider that 'giving legal advice' and would just give me the blanket answer of 'contacting an attorney'.

Again, you will want to run this by your brokerage first to see if they have any policies or procedures you need to follow here.

Once you start the process off wrong with the tenant it is hard to unring that bell plus the tenant  likely has ammunition against you the landlord that you were not following the correct procedures for notifications etc.The value of any equipment would be in how well it works and how old it is.

It affects your operating procedures, legal protection and anonymity.Make sure that you actually have valid reasons to create an LLC and to transfer property into it before jumping in.

This same procedure could be affecting the communities where you invest.In my opinion, the coming real estate market correction I am forecasting will follow similar paths as the period from 2007 to 2010.

@Richard Heine the proper procedure is going to be very dependent on your state statutes on how to do this.