Transferr property into LLC

[Aaron Christen]

I am purchasing a 4 unit apartment building in my hometown in Wyoming. I am using Guild Mortgage, from which I heard of on one of the podcasts, and we have a branch in my town. I was going to purchase this property with my LLC that already has 1 investment property in it, and it was created and being used for this purpose since 2015. The mortgage company told me that I couldn't purchase with LLC, but was unclear as to why they wouldn't let me. The LLC has perfect track record the whole time it has been in existence, and is a single entity LLC.

Now to the point, I am ending up purchasing it under my own name, but have made it clear to everyone involved that I intend to put it into the LLC after closing. The mortgage company said that it wouldn't create a due on clause. How should I go about the transfer into the LLC, and can anyone give any incite as to why they wouldn't let me purchase with my LLC in the first place? The property is currently owned by an LLC.

Thank you,

Aaron Christen

AaLi Investments LLC

[Jerry W.]

This not true, transfer to a land trust can cause the due on sale clause to be activated. A transfer to a testamentary trust is exempt from the due on sale clause. there is a federal statute that prohibits it. there is no such federal statute about land trusts that I have ever heard of. Transfer to a land trust can cause the due on sale clause to be triggered. Using deceit about the trust could get you sanctioned by the bar association about the nature of a trust, and could definitely get your loan called. You might even be liable on federal charges if you falsify the information about the nature of the trust. A transfer to a Land trust normally provides NO protection from liability like an LLC does. Saying the issue of due on sale clause can be completely avoided by using a Land trust is false in my experience.

No bank I am doing business with is going to loan you any money using the I am a hidden man stuff you are proposing here.  I realize you are trying to build a business peddling this stuff but this appears to be misleading to me.  you are overselling a product that probably 99% of the folks on here don't need.  Do you really think @Aaron Christen is ever going to be able to remain anonymous in Green River Wyoming while personally managing a 4 plex?  Do you really think the Sweetwater County Treasurer won't know he owns it?  Do you think the Bankers will lend to to him with 3 layers of corporate and trust ownership?  Who do you think is going to interview the tenants, or hire the repairmen?  How is he going to network with other landlords or people selling their property if he is anonymous?  Who is going to go look at properties?  who is going to sign purchase offers?  Who is going to sign the statement of consideration required in order to file a deed?  Who is going to send the letter saying you have 72 hours to quit the premises?  Who is going to testify about the renter not paying rent, and needing evicted to the judge?  An anonymous person.  That type of protection may have some application for some high worth individuals, who do everything through other people.  none and I mean absolutely none of the big investors on this site use this kind of program.  it does not work for hands on investors.