Updated over 8 years ago on . Most recent reply
Questions on forming LLC on properties with Mortgage
I enjoyed reading the various topics in RE investment and actually had questions on forming a LLC. So I recently closed on my 4th rental property and currently have all of them under my name. All 4 are financed via mortgage from various banks.
1. Am I able to move properties in an LLC, even if they have mortgages? I am guessing the Bank would not approve of this.
2. I spoke to an attorney and he mentioned I could put each property in an LLC and don't need to get bank approval. They won't know until I miss a mortgage payment.
3. What about if I try to purchase a 5th property, will the same banks still finance me going forward if I form LLCs?
4. Same attorney also mentioned its about $500 (a property) to form an LLC and of course I'll have to deal with the annual paperwork for the state.
5. Is there some sort umbrella insurance I should get for all the properties?
Sorry if the questions are repeats from other posts.
-Paul