I am a landlord with numerous rentals. All of my rentals are titled in my name. My goal is of course is to limit my liability. Do I need to transfer title of my properties out of my name and into the LLC's name? What is the proper process to my limited liability? Please explain
I had a questions on this as well with a personal residence with a VA loan. If it's transferred from my name to LLC would the mortgage be called due?
Transferring title by quit claim deed could trigger the "due on sale" clause. There are tons of post about this and if it's worth the risk. There is a big post going around right now about someone who just had his mortgage called in because of that.
Some say a good umbrella policy is all you need with good management.
@Donald Green since you currently hold title in your name, your name remains associated with the property. Even if you transfer title, your name will be easily found.
Regarding limiting liability, the LLC is just an obstacle. If you have enough equity, a motivated lawyer will find a way to pierce the veil.
LLC are wonderful for tax breaks - they are still good vehicles to use.
@Joe Sillaman i'll have to ask a senior underwriter but i'm pretty such if you transfer from a personal VA loan into an LLC either you'll trigger DOS or commit mortgage fraud. when you got the VA loan you produced a cert of eligibility, which proved military experience. your LLC was never in the military, so there's another issue.
however, it's a good question and i'll review the guidelines a little more tomorrow.
That's what I though. Was thinking of refinancing it into a conventional to get my VA back.
If it is your personal residence why would you put it in an LLC are you afraid you are going to sue yourself? you will lose some tax benefits of being a homeowner like the capital gains exemption.
@Donald Green you are fine keeping them in your own name. An LLC will do basically nothing but cost you more money. You will see no additional tax benefits from the transfer. Limiting liability is a misconception and there are very few cases where you will have limited liability. You are better off with a good insurance policy. 99% of lawsuits in this business are tort cases (negligence) and nothing can protect your ***(ets) in that type of case.
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