I’m buying this house outright, rather than L/P or seller carry or other creative financing setup. The property has already been transferred into the heirs’ names, but I have to borrow to pay for it - and the bank will only lend to me, since my c-corp is too new, no assets etc. They will not lend in the company name; I’m trying to get them to lend to me AND the corporation (me as co-signer) so that at least the corporation is on the deed and can begin to build a credit history.
Now, my best scenario plan is to flip to another investor, but I think I probably be selling this to a tenant/buyer in a L/O (worst case, just rent it out). If I find another buyer quickly and get a P&S signed, I won’t need the stinking bank. But I’m getting a loan committment just in case as a backup.
Forming a corporation is easy, and is better for me for tax purposes, but getting financing in the corporate name is the main problem. I don’t hear it talked about much on this list (another topic perhaps!).
Yes, we’ll discuss in person shortly! Today, hopefully!
Name on Purchase contract leading to Trust - Posted by Rosie_FL
Posted by Rosie_FL on September 26, 2000 at 09:00:09:
Hi all,
When you intend to purchase a property and take title in a Land Trust, do you print your name on the Purchase Contract or the name of your future Land Trust? Or does it matter (I’m in Florida)?
Thanks,
Rosie_FL
P.S. Closed on that $58,500 house yesterday. Anyone want to move to Orlando?? heh heh heh
Re: Name on Purchase contract leading to Trust - Posted by Marty Weisberg
Posted by Marty Weisberg on September 26, 2000 at 10:37:47:
Rosie,
I am in Florida, too. I do all of my properties in land trusts and always use my name or LLC when doing the contract. However, I always either check the box giving me the right to assign the contract. One technique that I really like when the seller or their agent says that they don’t want me to be able to assign the contract is to add an addendum that reads…“Buyer reserves the right to take title to this property in any name that he choses.” This has allowed me to get around a contract where I can’t just assign it.
Marty, what about if the lender objects? I’m purchasing a house direct from an estate sale, no agent involved, and I’d like to do biz in my c-corp name, but the lender won’t go for it. Instead, I intend to do the land trust thing after the sale -
and some day I’ll get around to calling you about the PACTrust experience…
Re: What if lender objects? - Posted by Marty Weisberg
Posted by Marty Weisberg on September 26, 2000 at 15:12:16:
Hi Sue,
Sure, sure, sure. I am beginning to get a complex. I know you’ll call when you’re ready.
I do not understand what you mean by the lender objecting. With an estate sale, what you would have to do is have the property transferred from the estate to the name(s) of those inheriting the property. Then you would have them place the property in a land trust and assign a (the) beneficial interest to you.
I hope that answers your question. Call me, e-mail me or post if you need mor info.