MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Moving Property to an LLC: What They Don't Tell You #realestate #investing #tips

14 Sept 2026 · 1 min

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Mark Kohler says landlords should move each rental property into a single-member LLC immediately after closing to shield personal assets from tenant lawsuits. Most loan agreements allow transfers to an LLC you fully own, and lenders rarely object even though they've already sold the mortgage. Skip asking the bank for permission, which only creates delays.

Chapters

When do I set up an LLC for my rental? Do you have a rental? Now. Do not worry about the mortgage and the due-on-sale clause. Banks understand that they're going to get transferred into LLCs. There's oftentimes the loan documents, there are provisions allowing for a transfer to an LLC of which the borrower owns 100% or to their revocable trust. And frankly, they've already sold your mortgage on the bond market 5 times over. They do not care. And I beg of you, do not walk into the bank and go, can I do this? Don't. They won't even allow you to go to the bathroom without getting 3 bank approvals. So please just transfer it to your LLC. As soon as you close, some of you that have rental properties for years, it's time to clean them up. Let's get them protected or protecting you from the tenants in those LLCs. But get those LLCs set up right away is for protection. And a husband and wife is considered in that bucket because it's going to be single member on that joint return.