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Loan in my name, but I have 5 investors. Can I move to LLC? Help!
Hey all, long time reader but first time poster. I currently own 2 STR rental properties and I am under contract for my 3rd, a short term rental in TN. The loan will be in my name and I am using a 15% investment loan. However, I have raised $85,000 from 5 total passive investors. For lending purposes (15% down, only me on mortgage) I am only one on the mortgage, but for tax and legal purposes I'd like the house to end up in an LLC after closing. However, I'm aware of the due on sale issues if I quit claim the title/deed to an LLC.
Any suggestions on how I can legally/not-sketchily move the house to an LLC while keeping the mortgage in my name? How does everyone partner with passive investors when there's still a mortgage involved (not paying cash)? What legal arrangement do you use?
I am thinking of backing out of this purchase if I can't get the legal part figured out and I would love some help! Thanks!
Seth