Should I get an LLC.

[Tyshawn Best]

Most of the hard money lenders I've connected only lend to entities. So should I get an LLC even though I plan on refinancing with a bank(That I've heard will not lend to entities) or is it not a problem. And what about this "due on sale" clause mean. Lastly if needed could I transfer my LLC into my own name when I refinance. Thanks!

[Jaysen Medhurst]

@Tyshawn Best, there's no need to set up a LLC until you have a viable deal under contract. They're quick and easy. Banks and CUs will lend to YOU not your LLC, even if the LLC is on the title. Meaning you will be on the mortgage personally and responsible for it. You may or may not have to take out a commercial loan. This is where you need to do the legwork of contacting all your local lenders to understand their products and terms.

"Due on Sale" clause means just that. If you sell the property, you must repay the note. Should you move title from your personal name to a LLC, this may technically violate the clause. It's exceedingly rare for a lender to exercise in that case, assuming you're in good standing. This is a conversation to have with lenders before hand. FYI: Fannie Mae explicitly allows this.

Not sure what you mean by "transfer my LLC into my own name when I refinance." Who else would be a part of the LLC?