Hello BiggerPockets Family,
Myself and 3 buddies recently purchased a duplex in Cheyenne, Wyoming as a buy-and-hold investment.
The property is currently owned by us 4 personally.
We would like to transfer the ownership of the duplex to our LLC. All four of us are equal members of the LLC. Our LLC is active and in good standing.
Problem: Our lender (BSI Financial Services) considers a transfer of ownership as the property being "sold". Thus triggering the Due-On-Sale Clause. This means we would need to pay the loan off in full. I have attached what I believe to be the clause.
How can we transfer ownership of our duplex to our LLC?
Thank you all in advance for your assistance.
@Gregory Cottarel you don’t without lender approval or willingly violating note. Odds are BSI will sell the loan when they do contact the new services. Mia likely they will say they are okay with it after a certain time frame. Typically a year, but will vary lender to lender.
To Recap: You reccomend we wait a year, and then ask our lender to transfer ownership.
Did I understand you correctly?
Thanks for your thoughts
I would ask your servicer today what their policy is, and would suspect it is a tear from acquisition
So you are NOT transferring ownership?
It's going from 4 individuals into an LLC owned by those same 4 individuals?
I would call the lender and ask them if you can
this may be helpful https://semiretiredmd.com/due-...