Asking for a friend, this is way out of my realm. He wants to know how to put his rental prop’s in an existing LLC. Do-it-yourself style even if its not recommended. How about Dave T. or others. Thank You, Herbster
special warranty deed.
Thank You All, My friend made it sound difficult so I needed to be told so. That’s easy, Thank You again, Herbster
It isn’t hard to fill out the deed. It is hard to know what type of deed to use for a given situation, or if the properties should even be transferred at all.
Two other items to consider:
Make sure that you talk to your insurers. The LLC needs to be a named insured or an additional insured, as do you (some LLC insurance contracts insure the owner w/o naming him). If a trust is involved it should be insured as well.
We generally send the bank a letter, certified mail, return receipt to let the bank know that Due-on-Sale is an issue. We have a letter that we give clients for this purpose. The idea is to protect against “Deceptive Business Practices” claims AND provide a waiver argument if the banks DO go looking for an excuse to force a refi in the future (when rates are high, for example). Have yet to run into a problem with this approach. I’m sure someone will, somewhere, but the odds of that are quite small in my experience.