Will An LLC Force A Due On Sale?

gtrkev profile photo

My lender won't allow me to title my property in an LLC, they want it to be in my name (and they're giving me a great rate 3.5% fully indexed).

I have been told by numerous people here in South Florida to just close on my investment property and then after closing just put the property into an LLC. I have been told that the loan won't be called in because no one at the bank checks as long as the payment comes in and that these loans are sold in bulk.

So I was wondering, Has anyone had their loan called in because they put their property in an LLC or a Land Trust? Or know anyone that has had that happen to?[ Edited by gtrkev on Date 02/03/2004 ]

Comments(3)

  • telemon3rd February, 2004

    If the payments are made on time, they don't care. You can finance it in your name, then title it to a land trust and have that land trust benificary be a LLC. The best of all worlds!

    [addsig]

  • gtrkev3rd February, 2004

    Thanks! That's what I've heard from several other people. I like your Land Trust/LLC combo.

    I know my revocable living trust was around $1,500.00 through an attorney,
    What is a going rate for a Land Trust.?

  • RunningQ3rd February, 2004

    I believe you can also quit claim deed it to your LLC without forcing a due on sale. Would probably cost about $50-$100 for an attorney to do the paper work.

    Q

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