All Forum Posts by: Gregory Cottarel

Hi All,

I have mold on my crawlspace joists/beams.

I contacted CrawlSpaceNinja as a remediation expert here in NC. 

We agreed on Soda Blasting to remove mold. So, they will need to remove insulation to access all joists/floor boards.

We agreed Dehumidifier to be installed to prevent the issue from reoccurring.

I already have vapor barrier installed.

Crawl Space Ninja stated that the fiberglass blanket insulation between the joists in my crawlspace can remain removed post remediation. They said I don't need the insulation - because the DeHu will keep the temperature in the crawlspace mild, year round. 

They stated my HVAC will actually run more efficiently without insulation - because the warm crawlspace air will rise in the winter. (And cool air in summer).

Any thoughts/questions/concerns regarding before I permanently removing hundreds of dollars worth of insulation from the crawl space? Does their logic make sense?

Thank you.

Greg

@Michael PlanteThank you for sharing that article. My team and I have been frusterated because all the Bigger Pockets books state "simply buy the property with an LLC" but this is virtually impossible if its residential. Your article shows this is a concern for many and lucky the solution is - if we ask - we may just be able to transfer.

Hello all,

Our current situation:

• - 4 partners own the duplex. Currently in our personal names.
  
• - 4 partners are equal members in the LLC.
• - 2/4 partners are on the loan. In their personal names. 

We'd like to:

• - Transfer the ownership of the duplex from our 4 personal names, to our LLC.

Problem:

Per our loan's "due on sale clause" (listed below) - The bank considers this transfer of ownership a sale. When someone sells a property, the loan is due. Thus, they will expect us to pay back the loan in full.

What is the solution?

• - Some of you have suggested: "Just explain your situation to the lender, they will understand and complete the transfer." But what if they say no?
  - Is asking the lender our only option?
  
• - Is there any other possible work-around?
  

Our loan is with BSI Financial.

We've read all the BiggerPockets books and were frustrated to find that this clause, which is commonly found in every loan, was not covered anywhere.

Thank you all in advance for your help.

Sincerely,

Greg, Brady, Myles, Tristan.

@Joe Splitrock It is a 30 year Fixed Rate Loan with BSI Financial. 4 of us own the property, 4 of us are equal members in the LLC, but only 2 of us are on the loan (including myself).

"considering it a sale that will trigger due on sale clause.... the bank notified them of calling the loan after transferring to an LLC." -- > That is the exact concern we have.

You mentioned a "Quit Claim". Can you please explain more how that works? Ideally we can keep it in the LLC even while its being sold/refinanced. Is this a solid solution?

@Nathan Gesner Nathan - Thank you for the input. If its as simple as just asking the lender, then that's great news.

@Todd Rasmussen We are working with a smaller bank (BSI Financial) so hopefully they will still OK it. Thats our concern, is if they say NO. Thank you for your thoughts.

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

@Alan Lacey

Hi Alan,

To Recap: You reccomend we wait a year, and then ask our lender to transfer ownership.

Did I understand you correctly?

Thanks for your thoughts

Greg

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