Hi Friends from the forum. I recently ran into some title transfer issue with my lender. We just closed on our first rental house less than a month ago. lately I've been thinking about all the legal issue that can potentially harm us since my name is on the title. I also have my primary residence under my name. Called my lender and they are not allowing transfer title to a LLC. I heard people telling me even though most of the loan have due at sell clause doesn't mean the bank will enforce it. I'm don't want to cause any problem in the future with my lender. They mention they will allow title transfer to a trust.
Have anyone had the same problem? Have anyone of you use a trust for protection before and what's the pros and cons?
Are you sure you really need an LLC in the first place?
I will assume you have landlord liability insurance on the rental property and can obtain umbrella coverage to the extent you feel you need it. What risks are you specifically concerned with? Do you conduct inherently risky activities beyond the holding of your rental property? Do you have a large mortgage on the property?
There is nothing magical about an LLC that most folks can't achieve more efficiently by other means.