How? -- Transfer Ownership To LLC (Triggering 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

[Nathan Gesner]

I've never heard of anyone getting hit with a due-on-sale clause just for transferring to an LLC.

Call your lender. Explain what you want to do. They will confirm it's not a problem.