Ins On A Wrap, Property Into Llc, Deal Structuring, Etc.
OK, FYI, I plan on seeing an attorney but I wanted to see if if could get any preliminary feedback on several questions I have, because it looks like there are some good conversations are going on this forum.
1. Insurance on a wrap. If I'm buying a house for my personal residence using a wrap-around mortgage, how should I handle insurance? The seller still has to make his mortgage payment which has escrow for insurance. We don't want to cancel his insurance because we don't want to send any red flags to the mortgage company which could trigger the DOS clause. At the same time, we don't want the insurance to be in his name in case something happened. So, should we just get our own insurance policy and count the cost of it as a part of doing business or what? What if someone falls down and hurts themselves?
2. Property into an llc. I've just re-fi'ed some investment property and want to put it into an llc. However, I don't know how the mortgagee is going to react to this...nothing is really changing except that I am trying to protect myself from personal liability...but the loans are in my name. How do I handle this? Can I just do it? I'd have to get new insurance policies, business policies...then of course the lender would be advised that the regular insurance policy was cancelled, but I don't know how they'd be advised of the new coverage and of course I'm afraid to call and ask. 
3. Deal structure. This questions is regarding the deal mentioned in question 1 that is to be wrapped...is there perhaps some other way I could structure the deal to where it would be better than a wrap? Maybe if he put his house into a trust then assigned us as the beneficiary? This fellow has a mortgage that he's making payments on and we're buying the house from him with a wrap-around, but if we did a trust and then beneficiary assignment, again, how would the insurance work? If a property is in a trust, then how is liability dealt with? Like if someone falls, what happens?
I look forward to any advice and feedback as I am stressing over these issues. THANKS!
Though not the exact scenario, the sub2 article here should help:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=472
Bottom line: If you own it, you insure it. Most any other way will create potential holes that make the insurance (and the premium) irrelevant. PM me with more specfic questions, if you'd like.