All Forum Posts by: Kevin Auyong

@Andrew Postell  to my knowledge no bank has called a loan. But if your rate was 3.5% and a few years let's say rates are 9% and the bank happens to audit and sees this, you don't think they might have incentive to get you on a higher rate loan? Of course this is hypothetically, I'm just throwing it out for information purposes, but I do appreciate your input.

My understanding is that it is possible that if you get a loan under your name and then move the property to an llc it could trigger a due on sale clause. Haven’t heard of it happening, but if you got a low rate and then rates went up, it would be tempting for the bank to call the loan and force you to refinance at the higher rate.

Thank you to all that replied. I’m kind of surprised on how many tenants have moved out in nov and dec over my 5 years of owning rentals in Milwaukee.

Thanks people. I reviewed Wisc tennant landlord law and section 704 of the code and nowhere did I see a limit on length of lease when it comes to going beyond month to month.

I've had a few tenants whose leases ended in Nov or Dec which was a bad time to try to get new tenants.

Going forward I wanted to end leases in Feb rather than those months to avoid those months so maybe something like Dec 2020 to Feb 28, 2021 so that would be a 15 month lease.

My Property manager told me that was illegal and no lease could be longer than a year.
Is this true?

Does any of this apply to newer multifamily units being built or is it just older  multifamily?

As much as it sounds like a lot of work. you should come down and drive all the streets and get a feel for those zip codes. You live close enough where you could drive down and explore for a few days.  Many people won't do the leg work themselves, but if you're spending your own money you should do it. I invested out of state and made multiple trips to areas I wound up investing in.

The whole idea of the LLC is to remove that property from your name, You and the llc are two different entities which is why there is protection. you don't think the lender is going to have an issue if they come after you for non payment and it turns out the house is no longer in your name but owned by an LLC.

They may not catch the changeover, but if they do they certainly can call the loan.

is anyone concerned that when the property gets moved into an LLC a due on sale clause may be invoked?

good return. what kind of cap rates are the typical mls buyers getting?