Refinancing a rental in an LLC

[Lucien Pruszynski]

Hello,
I've run into an issue for the first time in my career. My wife and I are 100% members of an LLC which owns a 3 unit rental property. We purchased the property 6 plus years ago with a loan that remained fixed for 5 years then adjusts. It is now adjusting and we would like to do a rate-and-term refi to establish a fixed rate while rates are what they are.
The issue I am running into is that lenders will not refinance a property which is deeded to an LLC. They require the deed to be in our personal names. That brings an issue of us losing our asset protection/ exposing our personal assets.

Has anyone reading this post dealt with this scenario or have any useful suggestions on how to proceed? Do you know of a lender that will do a rate and term refinance in the name of an LLC with us personally co-signing?

I thought of deeding the property to our personal names and then getting a 1-2 mil umbrella insurance policy as an option.
Another issues is that even if we deed it to our personal names, do the refinance and then deed it back to the LLC, the lender can call the note due for transferring the title (that is uncommon, but possible.)

Any suggestions would be great! Thank you.

Lucien Pruszynski
Wwinw Ventures, inc.

[Ali Boone]

Everything you say is the exact information I was given when I was inquiring about putting my properties into an LLC when they have loans on them. The end result, in attempt to avoid the (slim) possibility of the due-on-sale clause being triggered as you mention, was I left them out of an LLC and just got the umbrella insurance policy. As far as I understand and can tell from the coverage terms, the protection the umbrella offers is just as good as what an LLC does.