Are these lending terms reasonable?

[Leah Fisch]

I feel like every day presents itself with new 'firsts'.

We purchased our first Buy and Hold (rental) property into an LLC and are now looking to refinance.

We qualified for a loan under terms that have me confused. I realize that LLC lending will be very different from personal loans so I'm wondering if this is normal.

• 4.75% Interest Rate
• 3 year balloon payments
• Closing costs of 6% loan value for a property we've already closed on 

This would bring the effective rate closer to 6% total on the loan. Which I'm sorta ok with. But is it normal to have just 3 year terms? 

What about after 3 years? The lender SAYS he expects the loan to renew but I've learned in the military to only trust signed documents. 

I'd love to hear your feedback on this and experience regarding LLC loans

[Stewart Miller]

Deed the house back to your name personally. Refi under your own name (if you can get better rates). After refi is complete, put the house in a land trust with the LLC being the beneficiary. This way, the bank won't call the dreaded due on sale clause because land trust are private documents. The only thing the bank sees is that the house was placed in a trust. Also, if you ever need to refi again, switch the beneficiary to you ( while doing refi) and then back to LLC when it's complete.

[Leah Fisch]

Thanks for the advice @Stewart Miller but we're looking to keep the property in the LLC