Transferring Mortgages Into LLC.

5 Replies

Hi All,

Happy Friday in the U.S.

I have a question I am hoping some people could provide insight into.

I have a few rental properties, have bought/sold, and managed properties for a few years now. I just recently started an LLC. however, and am trying to figure out ways to place my properties under my LLC. instead of my personal name.

I have queried some of the mortgage companies and they wont allow a transfer of the mortgages to the LLC. Obviously buying something out in cash would be simple enough to put a property under the LLC.'s name, but are there any tricks to get the current few mortgage I have under the LLC.? The LLC. has had a small amount of cash income over this previous year.

Any advice would be great.  Thanks all.

- Jon

Many people just deed over the personal rental properties to LLC all the time. I never heard of anyone getting into a trouble with it. Not necessarily recommending but just stating what I know.

@Jon Litz

To avoid the due on sale clause when transferring to an LLC one strategy is to deed the property to a land trust where you are the initial beneficiary. The Garn St Germain act will void the due on sale clause. Then you will quietly assign the beneficiary to the LLC.

@Jon Litz - They shouldn't have any issues with you transferring from your personal name into a single member LLC that you also own. At that point you're basically just changing the name that shows up on public record. They're in no different position than they were in before

Thanks for all the replies everyone. The LLC is in my wife's and my name.

Not to get more in the weeds, but she has some properties in her name, I have some in mine.  We'd like to put all the "business" properties under the LLC.  Mainly for the protection an LLC offers regarding law suits, etc.  Each of the properties have a due on clause as far as I can tell.

Mike and Soh, are you referring to the same type of deed?  Thanks again all.

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