Hi Ray…I am closing on a 2nd home and it is a mobile land combo…the title company is doing the note and I get to choose the title company. The seller is holding the financing…I have the ability to put it into an LLC but if I do, I cannot get it insured, which I need to have liability to rent it out and the location of this is really tough in regard to insurance. It is a very cut and dry…should I run this by an attorney? Also…once I close should I file it with the county it is in?
I am purchasing a MHP and hope to have closing next week. Late in the DD phase the seller agreed to carry financing for 50% of the purchase price. But she wants to do a Land Contract instead of a purchase and a 1st mortgage. The principal and interest payments of the LC would be just as they would if it was a normal note.
I am concerned about losing my investment should she get sued by a hungry lawyer who notices she is holding this asset. Or if she files BK.
She did tell me she would set up a single member LLC and transfer the deeds (multilple parcels) into the LLC until we paid off the contract.
Anyway to further protect myself with this situation.
Re: Purchasing MHP on Land Contract - Posted by ray@lcorn
Posted by ray@lcorn on February 08, 2006 at 21:08:41:
Keith,
Get a lawyer to help you with this one. DIY legal projects usually have bad endings.
In my “I’m-not-a-lawyer” opinion, the single-member LLC as the obligor on a seller-held note will actually solve both party’s concerns… but only if you own the LLC. That protects the seller against any personal claims against you or your other entities, and it protects you from any claims against the seller.