So, if you had one account that had a bunch of stocks as well as a house, and there was a prohibited transaction involving the house, you would owe taxes and penalties on the stocks, too.I'm not a lawyer or an accountant, so your mileage may vary.

In effect the LLC can easily die and the lender has little to show for its position if the property is not enough to protect the lender.So, why would you expect a lender not to see the LLC as a higher risk?

Typically what you see is:5-10% of gross rents collected (some set minimums in addition)50-100% of 1st month's rent for getting a vacant unit rented plus advertising (high in my book)50% of 1 months rent for lease renewal (complete rip off)Some will take a portion of late fees (bad)Many will charge you hundreds of dollars to handle evictions (even though they do nothing but call the lawyer who handles it all)Typically, they also charge $25+ per hour for handyman (who they likely pay WAY LESS)The fees are never-ending.

signs for the place - good condition - visible - other marketing improvements (that are cost effective)?

Some investors are effectively contractors and can accurately estimate the work.If you lack the skills and can not afford large surprises then always expect to pay for an inspection.

You are new and you need to focus on the fine details if you want to understand.You are not transferring to the LLC in the weak sense of the phrase.You want to effectively sell and the LLC buy (transfer of title).

So... my parents are going to a lawyer to talk about the signatures they never signed.

I have been advised repeatedly, that a substantial amount of sales come through connections to lawyers.

Do you tell a lawyer the basic terms and they write up the agreement?

Using a lawyer is one way to help improve the odds as you now have the lawyer liability insurance on the line.Pick up William Bronchick's Wealth Protection book ~$14.00 on Amazon).