Private money loans and refianacing

[Troy Forney]

We did the BRRR strategy on a property and refinanced it with hard money or private lender who made us put the property in an LLC. The loan and title is in the LLC. I am trying to refinance at a lower rate on a FNMA 30 year fixed, but it has to be in my personal name for 6 months. How can I do this. Will my current lender know if I transfer it out of the LLC and call the loan due? Anyone have any experience with this?

Side note: I see I spelled refinancing wrong, but couldn't figure out how to fix it.  

[Scott Smith]

You would have a few options with how to proceed with refinancing the property. One strategy that investors will use is simply adding a Land Trust to the picture. Transferring a property into an LLC after refinancing it might trigger the Due on Sale Clause; however, transferring a property into a Land Trust is an excluded transfer from that clause thanks to the St Germain Act. Once the transfer is complete you simply assign the LLC as the beneficiary. This article explains it in more detail:

https://www.biggerpockets.com/blog/llc-lending-problem

If you have more questions feel free to reply to my message! Just another option that has worked for many starting and experienced investors alike.