Posted by dutch on April 02, 2007 at 20:17:46:
Retitle them into Land Trusts, ie 123 Main street trust, Joe Blow as Trustee. Done via QC deed in most states, cost varies. Here in OK it’s $13.00
The BENY of the trust will be your LLC.
Lender’s don’t care as long as payments are made on time.
Dutch
Moving Rental Properties in an LLC - Posted by Mitch Sellers
Posted by Mitch Sellers on April 02, 2007 at 16:16:35:
I currently own 5 rental houses and i hold title in my name. I have an LLC and I want to move these properties into the LLC. What is the procedure for moving them and will my lenders have anything to saya about it?
Re: Moving Rental Properties in an LLC - Posted by Rich
Posted by Rich on April 06, 2007 at 24:52:38:
You will be in technical violation of the mortgage as they all have the clause commonly called “due on sale”, but is actually a list of events that will allow a lender to call the loan due and payable in full. The only exception, under Federal law, is the Living Trust wich does not trigger the DOS.
From a practical point of view, lenders might exercise their right to call a loan if the rate is below market and you’d qualify for a refi at a high rate. But with the sub prime meltdown keeping them plenty busy they will be much more concerned with nonperforming loans than with contract enforcement.
I would put the properties into a Living Trust and then change the beneficiary since that leaves no paper trail for the lender should they decide to do anything about it. They usually don’t but you don’t want to be the one they select to make an example of.