Closing in personal name, then switching title to LLC.

3 Replies

Hello BiggerPockets, 

My name is Robert,I am new to real estate investing, and I am starting out with an LLC due to other investors working with me. The local loan officers that I am working with are saying that they do not close loans in an LLC name, and they can switch the title in the name of the LLC after we close.

My concern is triggering a "Due-On-Sell" clause and that the life of the loan will be under our personal names and not the LLC.

-Does this open us to up any liabilities if we get sued? 

-What are some things to look out for during this process? 

-Would this cause any problems with insurance? 

I am just getting started, and I don't want our other assets to be at risk. Thank you, any advice would be great.


@Robert Lemley

This is a great question that I have seen posted all over BP and social media before. I really suggest speaking to your real estate attorney and asking them to review your loan terms. There are ways of avoiding the due on sale clause (usually by utilizing trusts) but this can differ from loan to loan. It is great to get all of the feedback here but your first step should be to speak to your attorney.

Does anyone have any questions I should be asking my attorney during the meeting? @Charles Carillo 

(Also I hope I tagged you correctly. I am still learning this website)