If I place my property in a land trust in which my LLC is the beneficiary can I still open a heloc on that property?What about if the property is under a L/O contract to sell?
Yes, you can if this is your property and you vested your title with your designated trustee. Are there other beneficiaries involved our just yourself…??
The reason I say this is in other trusts that I work with if you as the settlor beneficiary ( person on deed on trust who vests title to trustee) opens a HELOC that could bind other beneficiaries in the trust so you have to all be in agreement that is the voting rights performed by the other beneficiaries in directing the trustee on the property.
As to the L/O the HELOC account I think would need to be closed before the optioner exercises their option on your property.
The question is how long will you have the HELOC account and will it negatively affect the equity or financing on the property…??
The only issue I see is that the trustee may need to be updated on the new financing or debt on the property.
Excellent .Thank you :D. Yes I was refering to if say I did not have a Mtg on the prop when the option was paid for and then needed like 10k for something not really effecting the bottom line of the option.I wouldnt thik that I need to disclose my financial situation with the prop. as long as the option I offered was available as stated at the time it is due.