My question is how do I avoid triggering the due on sale clause in the mortgage when the seller transfers the deed to my name?

Also, if there’s a mortgage, transferring it to an LLC could trigger the due-on-sale clause, requiring lender approval.Better Alternatives to Avoid Reassessment & Save on Taxes:Living Trust (Best Option) – Your aunt and stepfather could quitclaim their interests to your aunt, who then sets up a revocable trust naming your mother and you as beneficiaries.

I am not averse to something in the 10-35k range but would need to find the right mix of location and situation to pull the trigger on a project like that.

Fortunately, if your mortgage is backed by Freddie Mac or Fannie Mae, transferring an investment property into an LLC will not trigger acceleration.

Recently, I created a Series LLC with separate DBAs (per advice from my CPA), but I haven't done the deed transfers yet.My main concern is the due-on-sale clause – if transferring the deed to the LLC triggers an issue with my lender.

We took loans under the individual name rather the LLC, would moving under LLC trigger a sale on paper?

@Blake Johnson If investors want to divide real estate holdings without triggering a large tax bill, the biggest challenge is that transferring assets out of a corporation is typically treated as a taxable sale at fair market value.

If a conventional loan is only available in your personal names, transferring the lot from the LLC to yourselves before the exchange could trigger IRS scrutiny and potentially invalidate the 1031 exchange due to the same taxpayer rule.

Faced with these burdens, many owners choose to limit their renovations to cosmetic work or, worse, proceed without permits to avoid triggering the requirement.This raises a crucial question: which is safer—a fully gutted and renovated building with modern electrical and heating systems, rebuilt to 2025 code but without sprinklers, or a building where the original, outdated wiring and heating systems remain in place because owners chose to avoid triggering costly sprinkler requirements?

Decided to pull the trigger finally in RE investing, taking advantage of interest rates and some on hand cash.