Starting a LLC

[Chance Cooper]

So I just put an offer on my third home we close next month, I will live in it for a year and then turn it into another rental property...This rental thing that I have created is starting to grow, so I think I may need to get protected...

If I start an LLC, and try to put my properties in that LLC, wouldn't the banks stop it? I am thinking they may make me restructure the loan because now its a rental property, and charge me more interest or may not even agree to allow me to put into an LLC. The home started out as a primary residence but transitioned into a rental. How do I slide all three homes into an LLC without the bank stopping me, or calling my loan due? Is it even possible?

I have watched a few videos on the LLC process but I have not seen them answer this question yet. Any help would be great.

Thanks

[William Morrison]

Originally posted by @Dustin Beam:

well maybe theoretically could go down, but probably not considering current rates. Mine is a 20 year ARM, adjusted every 5 years. I'd like that fixed rate, but I decided I wanted the LLC more.

Interest rate was similar (for now anyway) for me. I got the first 5 years at 4.25%. YMMV

Also only had to put 20% down instead of 25. There are pluses and minuses for both, just have to decide how you want to do it.

 Dustin, not a bad set of terms for a commercial loan.  I have a 4.625% 5 year arm over 20, I think I'm at about year two.  Before ever using a commercial loan I did not look at the pay down rate in my evaluation of a deal.  Costs, vacancies, major repairs vs rents were the main items.  I looked at buying right and value added as well.  I generally do not count appreciation, seems it can be flat for years and then jump, or drop.  I take it as it comes.  But buy down is a lot different on a 20 year note.  Check an amortization schedule and run the same loan with 30 and 20 years.  The difference is worth keeping in mind in your evaluation.  Your numbers still have to work, but not a bad wealth creating method.
You just can't spend it.  Grin.
I would probably still go 30 year conventional if I could because my money goes farther, say 5 properties vs four.  Like they say if you have only one and it's vacant, you are 100% vacant.