Can I move my property under the LLC?

[Saurabh Mehta]

I am a newbie investor and bought a duplex under my name with a mortgage.

I was told by my lender that I could not have obtained a loan under LLC.

Now, I would like to move that property under LLC to protect my assets. What steps do I need to take? Would this affect my current mortgage? Do I have to pay a higher premium for my insurance?

Thank you BP community.

[Daniel Haberkost]

Originally posted by @Saurabh Mehta:

I am a newbie investor and bought a duplex under my name with a mortgage.

I was told by my lender that I could not have obtained a loan under LLC.

Now, I would like to move that property under LLC to protect my assets. What steps do I need to take? Would this affect my current mortgage? Do I have to pay a higher premium for my insurance?

Thank you BP community.

Your lender likely has a clause in the mortgage that allows them to call the entire balance of the mortgage due if the title is transferred out of your name. Now I know many investors who have quit-claimed their properties to LLCs anyways and have not had any issues. Generally, lenders don't care as long as the mortgage is paid each month but that does not guarantee that yours would let it slide so you would be taking a risk doing this.