Posted by JHyre in Ohio on August 20, 2002 at 05:39:27:
As long as you keep good records, these properties should not taint your non-dealer properties, even if all of the properties are held in your name. I’d also consider finding a new bank…not allowing the homes into a C-corp (assuming that’s the appropriate entity for you- personal details matter greatly) with your guarantee is needlessly restrictive, and certainly doesn’t help with asset protection planning. Simply deeding the properties to the corporation once you own them will trigger the due on sale clause, so that’s not very helpful. If you deed the properties into a land trust, and then make the C-corp the beneficiary of the land trust, that triggers the due on sale BUT the bank probably won’t catch it- run a search on the MNG, there’s LOTS of discussion on that issue out there.
I’ve had some long term rentals that are currently owned in my name (planning to put into trust). I’ve set up an LLC which I currently use for one L/O, but would like to have other properties in it.
I have the opportunity to do several flips and raise some much needed cash. Two of these properties will be rented back by the owners for about three months after the sale.
Question: If I get a new mortgage to obtain these properties, how do I get them into a Corporation (I know it’s best to use a C-Corp, but can I use another LLC?)when the mortgage company insists that I, not my company buy the houses? (they won’t allow it even if I personally guarantee) Can I just buy them in my name and give them to my company? I suppose that by the time I get it all figured out, a year will have passed and I won’t have to worry about it.):…I do not want my other rentals to be classified with these Dealer properties and “tainted”.