Posted by JPiper on December 03, 2000 at 08:39:44:
Not much to understand here. Most conventional lenders are not going to loan to an LLC or corporation without a personal guarantee unless the entity has a significant track record and financials on it’s own.
I’d say it’s unlikely that you’ll find a conventional lender who will loan to a land trust.
Hard money lenders or other private lenders might loan under these circumstances if they are lending strictly on the asset…but be prepared to pay high rates and points.
Posted by Michael (NJ) on December 03, 2000 at 08:25:47:
Hi,
I’m presently in contract to buy an investment property. I wanted to buy it through my investment company but was told I had to personally sign on the loan. From what I understand an investor can hold the property in a LLC and the loan through a Land Trust. Does anyone know of any specialist in New Jersey that could help me understand this more and also get this set up. Any advice is appreciated. Thank you in advance.
Re: LLC’s and Land Trusts - Posted by phil fernandez
Posted by phil fernandez on December 03, 2000 at 10:27:13:
As Jim has said below, the banks are going to want you to have personal liability for the loan. Take title to the property in your name and once you own it deed it into a trust with your LLC being the beneficiary.
Bill Bronchick has a good article on this in the How To Articles section.