Rent/Sublet property to LLC for liability protection
I live in NJ with a property that I want to rent out that is mortgaged in my name. I understand that deeding my property to a LLC can trigger a due on sale clause on my mortgage. Question, can I rent/sublet my property to a LLC for liability protection? I would still have umbrella and property insurance, this would only be for something catastrophic.
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#3 Guru, Book, & Course Reviews Contributor
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Saying other separate LLC can't be touched is not really true, your other LLCs are your personal property, like stock in GM, claims may the be attached for revenue from operations or a forced sale to cover debts arising from your suit.
There is no good reason to put SFDs in separate LLCs!
You take on more liability exposure driving your car than you do with a single family dwelling being rented! Just employ good management techniques, just don't be negligent, have insurance and relax! :)