How? -- Transfer Ownership Of Duplex To LLC w/ Due On Sale Clause

[Gregory Cottarel]

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.

- Greg

[Michael Plante]

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-...