Need llc but have conventional mortgages

[Chris Simmons]

I bought my first rental 2 years ago and will close on my 3rd in a few weeks. I plan on growing the owner managed landlord business and need to get serious about liability and asset management. Right now I am regular sole prop with title in my name etc. One house has mortgage, one house is free and clear and the 3rd will have a mortgage filed by my private, short term (24 month) investor (father in law). I tend to buy distressed fixer uppers and go in with cash to buy and rehab and then plan on getting long term, conventional financing at 80% of appraised value after properties have seasoned for 1 year. That will effectively cash me out and return all funds so that I can repeat the process a couple times per year once I get the process started. Unfortunately, the easy, favorably termed conventional mortgages are for consumers and investors but not llc's or other corporate entities. I can hold title in my name or trust but no llc and if I transfer after closure, whamo....due on sale clause. Also, from what I understand, I am capped at 10 mortgages...several years from that roadblock but would like to understand options. From what I understand, I need to form llc...in Oklahoma, tulsa area, single member and series llc's are accepted in the law so we are fortunate there. But how do I form llc with title in my name or in trust? If I am managing my own rentals, technically titled in a trust in the future once all this gets figured out, do I need to be licensed or a realtor, or can I still go the diy route since they are basically mine? How do all you smart people do it? Llc for the management company and for each property? Right now I am sole prop with tons of insurance and great properties but I've been told I have a time bomb on my hands. Please help me understand how all you smart people do this. Thanks

[Jerry W.]

@John M. an umbrella policy is NOT a primary coverage insurance. it is like a secondary insurance that only kicks in when you have exhausted your primary insurance. So if you have $500K in primary insurance, if you get a $400K settlement against you, your umbrella policy pays nothing. If you get a $700K judgement against you the umbrella policy pays the $200K part of the judgement that exceeded your primary coverage.