In a recent consultation with LegalZoom, they stated that I "needed" a document that allows me to LEND my properties to my LLC. The said that this document protects me in that I am allowing my LLC to manage and execute the property per this document. I inferred that this was a needed legal document, as they stated it was why their service was so expensive.
Any idea what they are talking about?
@John Hisghman what are you trying to accomplish?
Would you be better served by transferring it to the LLC?
I am concerned about my lender making my loan Due on Sale, when I transfer from me to my LLC.
My goal is to have the LLC act as the legally responsible party to the property, for protection from inappropriate litigation.
Perhaps I’m overly paranoid?
If you are the homeowner, you will still be sued along with the property manager LLC in something like a slip and fall. It takes 5 minutes to get the ownership information from the city/county website.
You should pay money to use a land trust to get the property off your name and into your LLC. You can then manage the entire rental within the LLC and take distributions out after everything. There is also the privacy part, but its going to get more complicated and possibly expensive if you are just self managing.
Will banks lend to a land trust?
Won’t transferring to a land trust also make the mortgage Due on Sale?
Of it is a Fannie loan, within the last 3 years or so, it’s is specifically allowed to be transferred to an llc which you are the sole member of. As far “lending” the property to your llc, I have no idea what this means, but you’re still the owner so you’re still liable, same as if you let the llc “manage” your property.