My partner and I are about to purchase a 4plex in Austin. We thought we would get the loan in our names then convey it to our newly created LLC. However, I was casually told that this is in violation of the DOS clause and the loan can be recalled immediately. We need to correct this mistake so we are trying to figure out the best option:

1. Keep the property in our names.  If we do this, do we add more insurance?  What can we do to protect ourselves?

2. Get a commercial loan through the entity - I realize we would be paying double loan transaction fees as well as a higher rate, but at least we would be in compliance

3. Call the mortgage company and see whether we can transfer the note - I assume this will not happen.

4. Any other suggestions?  We are due to close in a week, so any advice would be much appreciated. 

We would potentially like to buy a few of these things, so any suggestions on how not to make the same mistakes twice would be much appreciated and helpful.