For those that are doing sub2 deals, do you go to contract with your LLC as the buyer? Is it even necessary to use a land trust? Any problems with a Bank of America FHA insured loan being called due? Thanks in advance for any help…
I personally always us the LLC as the buyer and then transfer to the LT. Use the seller last name on as the name of the Trust. If you plan on holding long term and leaving the financing in place you should use a LT. You never now what banks are gonna do in the future. Just protect yourself. They have a right to call the note at any time ownership transfers (regardless of beneficial interest).
There is always a risk they might call it due… not in the near future though, i think … now, if interest rates go up to 9 and 12% there might be a good reason to exercise that option…