Holding title in LLC and personally financing property

Ok, new to this LLC idea and have been reading thorugh the forums. Here’s my situation and questions.

  1. I personally purchased and got financing for an investment property
  2. Property is rented and rent checks are being sent to me personally. Rent payments are used to pay for the mortgage and other property expenses.
  3. Formed and LLC and planning to quit claim title to the LLC.

Question: After the property is transferred to the LLC, will rent checks need to be written to the LLC? If so, how are funds transferred to me so I can pay the mortgage w/o getting into the issue of commingling , since the LLC is a separate entity.

…confused newbie

Transfer is ownership change similar to a sale and violates due on sale clause of the mortgage. LLC should collect all rents and pay all expenses through its own accounts.

Just keep in mind that acting as a manager makes you personally responsible for any actions you do as a manager of the LLC. That is a very easy to way for creditors to bypass the limited liability protections of the LLC.

While it technically violates the DOSC, I have never seen a mortgage called due by the lender for transferring title to the LLC (as long as the payments keep coming in).