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?

@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.

Buying at the mortgage balance (~$150K) positions is under the fair market value and can trigger gift tax rules.

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.

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modern electrical and heating systems, rebuilt to 2025 code but without sprinklers, or a building where the original, outdated wiring and heating systems remain in place because owners chose to avoid triggering costly sprinkler requirements?

I currently have around 20k cash for a down payment and that is steadily increasing so I want to pull the trigger soon.I'm interested in Fort Wayne for a few reasons:- I have some family in the area (they won't be involved, but have some general knowledge of the area)- Decent schools- Low crime- Airport- Low pricesAny advice or connections are welcome as I am completely new to this.

This is how you accomplish this: You can change the opt-out language in hopes that your sellers will not respond with words that do not trigger automatic opt-outs.

Have been talking about getting into real estate investing for the last 2-3 years and finally pulled the trigger on a 3 unit house hack in Soulard that will be closing later this month and will be self-managing the property.I'm trying to network a bit with other investors, build a solid team of contractors / handymen, and set my systems up in way to scale, but also so my tenants have a good experience.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):
REAL Red Flags That Matter:
The Partner Complaint Trigger
Disgruntled partner files Form 8082K-1 dispu...

We are about 2 years away from pulling the trigger on something.